Rongsheng shares nosedive on link with insider trading scandal

Hong Kong: The share price of Rongsheng Heavy Industries Group fell 18 percent on Monday following a profit warning and news that a separate company owned by its billionaire chairman was under investigation in the US for alleged insider trading.

The US Securities and Exchange Commission on Friday filed a complaint against Well Advantage, a privately held company controlled by Zhang Zhirong.

The SEC claims Zhang’s firm was involved in insider trading ahead of a bid by CNOOC for Canadian oil company Nexen.  [30/07/12]

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