Ex-banker faces Hong Kong insider charge

Du Jun, ex-managing director of the investment bank, appeared in a Hong Kong court Friday but did not enter a plea on nine counts of insider trading, the Securities and Futures Commission said in a statement issued late Friday.

The former banker also faced one count of counseling or procuring another person to deal in the shares of a listed company prior to an announcement of an acquisition deal, the commission said.

Du was arrested at the Hong Kong International Airport Thursday on arrival from Beijing, it said.

If convicted, Du will face a maximum penalty of 10 million Hong Kong dollars ($1.28 million) and 10 years in prison.

The commission said Du had allegedly possessed confidential information as part of a Morgan Stanley team advising listed company CITIC Resources Holdings Limited on a $1 billion purchase of an oil field in Kazakhstan and the issuing of bonds to finance the deal.

He allegedly spent HK$86 million ($11 million) to buy 26.7 million shares in CITIC Resources on nine occasions between February and April last year. CITIC Resources' stock price jumped 13.9 percent on the day of the announcement of the acquisition deal, the commission said.

Morgan Stanley in Hong Kong could not be reached for comment Saturday.

Du has been released on bail. His case is adjourned until Sept. 5.