That’s almost the very definition of insider trading.
This is from a Chinese site. The law seems about the same.
“The most straightforward (and most common) example of when insider dealing takes place can be summarised as when a person connected with a listed company who has relevant information in relation to that company (which he knows to be relevant information) deals or counsels or procures another to deal in the listed securities of that company (or a related corporation) or their derivatives, knowing or having reasonable cause to believe that such person would deal in them.”
This is a more specific and relevant metion of the law in context:
[START]
Insider dealing by counselling or procuring another to deal outside Hong Kong:
Insider dealing takes place when any person who knowingly has relevant information in any of the circumstances described above:
•counsels or "procures another person" to deal in the listed securities of that listed corporation or their derivatives (or those of a related corporation), knowing or having reasonable cause to believe that the other person would deal in them; outside Hong Kong on any stock exchange other than the Hong Kong Stock Exchange.” [END]
This last example is exactly what CS would be doing for GCL. CS might not know the information that would make this transaction inside trading, but the law would come back on GCL who 'procured' them to act. So if it is GCL buying I would be surprised.
[The link to that information:] http://www.deacons.com.hk/eng/knowledge/knowledge_25.htm
LNC Price at posting:
$1.14 Sentiment: None Disclosure: Held
