It was bets put on in July and early August that caused the bulk of the losses.
A July 2008 email from Leslie Chang, Citic finance director at the time, stated his belief that the US dollar would remain weak for some time, and that the company needed Australian dollars in the near term, so the company could get more aggressive with the contracts.
“These contracts, to use a cliché, are based on what stays up, always stays up?,” asked Justice Michael Hartmann, chairing the tribunal, in clarification.
The directors for whom the SFC is seeking sanctions are Mr Chang, Larry Yung, chairman at the time and son of Mr Rong, Henry Fan, a managing director, Peter Lee, who headed the Australian arm of Citic, and Chau Chi Yin, an executive director and group financial controller.
The SFC is also pursuing the group through the courts seeking restitution for shareholder losses between the September 12 announcement and the October 21 profit warning.
The regulator launched its misconduct case on September 12 last year — a day before the case would have passed the statute of limitations deadline.
It was bets put on in July and early August that caused the bulk of the losses.A July 2008 email from Leslie Chang, Citic finance director at the time, stated his belief that the US dollar would remain weak for some time, and that the company needed Australian dollars in the near term, so the company could get more aggressive with the contracts.“These contracts, to use a cliché, are based on what stays up, always stays up?,” asked Justice Michael Hartmann, chairing the tribunal, in clarification.The directors for whom the SFC is seeking sanctions are Mr Chang, Larry Yung, chairman at the time and son of Mr Rong, Henry Fan, a managing director, Peter Lee, who headed the Australian arm of Citic, and Chau Chi Yin, an executive director and group financial controller.The SFC is also pursuing the group through the courts seeking restitution for shareholder losses between the September 12 announcement and the October 21 profit warning.The regulator launched its misconduct case on September 12 last year — a day before the case would have passed the statute of limitations deadline.
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