HK SFC bans Edmond Leung for insider trading

Hong Kong’s securities regulator has revoked the licence of Edmond Leung Chi Keung of multi-asset hedge fund Cheetah Investment Management and banned him from re-entering the industry for 10 years, as of yesterday.

Leung had been licensed to carry on Type 4 (advising on securities) and Type 9 (asset management) activities and was accredited to the hedge fund from November 2005 to May 2012, and no longer works there.

The July 11 action follows a finding by the Market Misconduct Tribunal that Leung – together with David Tsien, a former equity salesman of JP Morgan Securities, and Steve Luk, a former fund manager of JF Asset Management – had engaged in insider dealing in the shares of China Overseas Land and Investment (COLI).

The tribunal found that, between January 7 and 26, 2004, Tsien disclosed inside information to Leung and Luk in respect of negotiations between JP Morgan and COLI about a top-up placement of the latter’s shares. Leung and Luk then separately sold COLI shares to avoid the expected loss in the value of those shares.

Last year, Tsien and Luk had their licences revoked and were banned from the industry for 10 years.

Leung's regulatory breach took place before he worked for Cheetah IM; he has worked for the firm since 2005 as a portfolio manager.