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The Supreme Court of NSW today made interim orders preventing Mr Steven Hui Xiao, the managing director of Hanlong Mining, from leaving Australia until 22 September 2011, other than to visit Hong Kong between 13 and 14 September 2011 to attend to visa requirements.

ASIC obtained these orders in connection with its investigation into suspected insider trading activities in relation to Bannerman Resources Ltd and Sundance Resources.

ASIC obtained ex parte orders on Monday 5 September 2011 freezing the assets and restraining the travel of Mr Xiao, Mr Calvin Zhu, a Hanlong vice president and Mr Fan Zhang, a Hanlong employee.

Freezing orders were also obtained for Mr Xiao?s wife, Ms Xike Hu, Ms FanFan Chen and Wingatta Pty Ltd, an entity associated with Mr Zhang.

On Friday 9 September 2011 these orders were continued by consent until Thursday 22 September 2011 for Mr Zhu, Mr Zhang, Ms Hu and Ms Chen, with the Court making freezing orders for Wingatta Pty Ltd, as the company was unrepresented.

Although, Mr Xiao consented to the freezing orders he sought to vary the travel restraint orders permitting him to make a brief trip to Hong Kong. ASIC opposed this variation at a hearing on Friday 9 September 2011.

Today the Supreme Court of NSW varied the travel restraint orders to allow Mr Xiao to visit Hong Kong. The Court found that ASIC had shown a solid basis for investigating whether Mr Xiao may have contravened the Corporations Act insider trading provisions. However, having regard to Mr Xiao?s connections to Australia, his undertaking given to the Court to return to Australia by 14 September 2011, and an undertaking from Mr Xiao?s wife to hand in her passport until Mr Xiao returns to Australia, the Court allowed the variation.

ASIC?s investigation is at an early stage and ASIC does not propose to comment further at this time as to the status of its investigation.
ASIC Website: Printed 13/09/2011