Wang Jiangsui, wife of Chinese real estate tycoon and Vanke
chairman Wang Shi, has sold 46,900 Vanke shares to allay
allegations of insider trading, sources with Shenzhen Stock
Exchange (SSE) have confirmed.
The shares bought on July 6 at 19.38 yuan (US$ 2.55) each surged
36 percent to 26.36 yuan on Monday.
The purchase was "procedurally legal" as it had been reported to
the board secretary of Vanke and was published on the SSE website,
while Vanke had provided the SSE with all the required information,
said SSE officials.
However, an official said, "We will follow up the investigation
and impose penalties if any wrongdoing is found."
Vanke chairman Wang Shi wrote in his blog on Friday that the
stocks were bought by an agent in the name of Wang Jiangsui without
informing the couple in advance. All profits from the transaction
were handed over to Vanke Co. Ltd..
"It seems unimaginably strange to outsiders and very
embarrassing for us," Wang wrote.
Wang Shi apologized to investors on his blog, but insisted that
there was no insider trading and it was only a "mistake" by the
agent.
The SSE has been closely monitoring the executives of listed
companies and their relatives who buy stocks in their own
companies. The SSE recorded 780 such transactions from May 9 to
July 20.
Officials with the SSE advised "special investors" to be aware
of the risks of insider trading and the harsh penalties
incurred.
In China, executives of listed companies are not allowed to sell
or buy stocks of the companies within six months of buying or
selling the stocks, among many other restrictions.
Vanke, founded in 1984, is one of the first publicly listed
Chinese mainland enterprises, with its core business in residential
property and development.
By the end of 2006, Vanke's assets totaled 47.7 billion yuan
with net assets of 14.96 billion yuan.
(Xinhua News Agency July 26 2007)
