CITIC Pacific has resumed trading today and it has dropped 7.3% and ended the day at HKD 5.59.
CITIC Pacific released a circular yesterday and included some of the foreign exchange accumulator derivative contracts that CITIC Pacific had signed with various banks as exhibits. (The documents are available at http://www.sfc.hk/dod/jsp/EN/DoDmain.jsp?StockCode=00267) As discovered by the media, contrary to what the board of directors claimed that they were not aware of the contracts until September this year, one of the directors, Vernon Francis Moore, actually signed on some of the contracts back in 2007. He should know about the contracts for a long time. Currently SFC the regulator is investigating this case; Mr. Moore will definitely have some explaining to do when the regulator calls him.
While the people who are said to be involved in this case (e.g. Francis Yung) have either been demoted or moved to other part of the Company as disciplinary actions, Mr. Moore is keep his position. What’s going on here?
