Hong Kong Legal System

T

tonners1212

Well-known member
Does anyone know how impartial the legal system in Hong Kong is nowadays, since they’ve come closer to China?

Think it’s another concern that has been overlooked a bit, as a court with Chinese influence could easily become a bit of a sham trial?

Obviously that wouldn’t help Sadler’s case, if he’s facing a kangaroo court.
 
tonners1212 said:
Does anyone know how impartial the legal system in Hong Kong is nowadays, since they’ve come closer to China?

Think it’s another concern that has been overlooked a bit, as a court with Chinese influence could easily become a bit of a sham trial?

Obviously that wouldn’t help Sadler’s case, if he’s facing a kangaroo court.
Click to expand...
I’ve been wondering that.

The SFC is supposed to be independent of the government and no doubt it was in the past, but the direction of travel in HK has only been in one direction in the last couple of years. Ditto the courts.

The only thing that works against that is that the financial markets in HK are very valuable to the Chinese government. If investors outside of China lost confidence in those markets that’d be a disaster for the industry. I think that’s the main reason we shouldn’t see any blatant government interference in the process. What might happen behind the scenes is far more difficult to gauge.
 
Hong Kong's financial regulator has launched criminal proceedings against Simon Sadler, the owner of Blackpool Football Club, and the hedge fund he founded, Segantii Capital Management, over allegations of insider trading. The Securities and Futures Commission also said it had started proceedings against former Segantii trader Daniel LaRocca. Sadler and LaRocca were both released on a cash bail of HK$1 million (£102,000) and HK$500,000 respectively. Segantii pledged to "defend itself vigorously" against the charges. - The Times

HK leaders angry with UK govt, especially David Cameron, for "interfering" in local politics and criticising recently introduced new legislation relating to security. There is an increasing element of tit-for-tat rhetoric between China and UK re Hong Kong and maybe Sadler's business activities are being used to try and embarrass HMG. We have never been forgiven for encouraging student protests a few years ago or even for ruling the colony for so many years up to 1997.

When I worked in the financial servive industry, insider dealing was something one aspired to on a daily basis!
 
Mexboroseasider said:
I’ve been wondering that.

The SFC is supposed to be independent of the government and no doubt it was in the past, but the direction of travel in HK has only been in one direction in the last couple of years. Ditto the courts.

The only thing that works against that is that the financial markets in HK are very valuable to the Chinese government. If investors outside of China lost confidence in those markets that’d be a disaster for the industry. I think that’s the main reason we shouldn’t see any blatant government interference in the process. What might happen behind the scenes is far more difficult to gauge.
Click to expand...
It’s a very interesting point that you’ve brought up there, perhaps they won’t want to be too harsh so it looks like a free market to the West.

It probably depends how much money is at stake and what China stands to gain from it.

I wonder how big this news is in the financial world?
 
Bobtheretiredbroker said:
When I worked in the financial servive industry, insider dealing was something one aspired to on a daily basis!
Click to expand...
Clearly you’re well versed in this industry; I’ve always thought the same - insider trading must be rife, as people are always networking and making relationships with other brokers for an advantage.

Which could mean that it’s hard to prove, or that this case has been on such a large scale that this is one of the few that can be prosecuted maybe.
 
tonners1212 said:
It’s a very interesting point that you’ve brought up there, perhaps they won’t want to be too harsh so it looks like a free market to the West.

It probably depends how much money is at stake and what China stands to gain from it.

I wonder how big this news is in the financial world?
Click to expand...
This is taken straight form behind the paywall at Bloomberg....

"Hong Kong’s securities watchdog started criminal proceedings against Segantii Capital Management Ltd. along with its founder Simon Sadler and former trader Daniel La Rocca over alleged insider dealing, marking one of the most high-profile financial prosecutions in the Asian financial hub."
 
tonners1212 said:
It’s a very interesting point that you’ve brought up there, perhaps they won’t want to be too harsh so it looks like a free market to the West.

It probably depends how much money is at stake and what China stands to gain from it.

I wonder how big this news is in the financial world?
Click to expand...
The investigation has been reported in the financial press before and Bank of America and Citigroup (I think it was) suspended trading with the fund at one point. So the proceedings won’t have come as a surprise to many, although it’s definitely an escalation - from gossip and rumour to something more tangible.

Banks etc won’t want to be too closely associated with a fund under a cloud like this so could be stand offish. That’s particularly the case if, as rumoured, the US SEC is also investigating.

I see two threats to BFC.

Reputational damage to Segantii which impacts on funding.

A conviction that leads to a breach of the ODT and a forced sale.

And, absent a plea bargain, the case is likely to run for months and months.
 
Mexboroseasider said:
The investigation has been reported in the financial press before and Bank of America and Citigroup (I think it was) suspended trading with the fund at one point. So the proceedings won’t have come as a surprise to many, although it’s definitely an escalation - from gossip and rumour to something more tangible.
Click to expand...
The Bank of America and Citigroup issue wasn't a complete suspension I believe, but suspension on a particular type of trade, so they still traded with the fund in other areas. This was after the collapse of another firms fund and associated investigations in wall street, if I recall. (Not a Segantii wrong doing)

This current issue is starting to look out of the blue... LaRocca was suppose to be moving to JP Morgan, who it appears are now saying that won't happen. If anyone has a whiff of this charge coming, I can only assume JP Morgan wouldn't have even considered hiring LaRocca.
 
tonners1212 said:
Does anyone know how impartial the legal system in Hong Kong is nowadays, since they’ve come closer to China?

Think it’s another concern that has been overlooked a bit, as a court with Chinese influence could easily become a bit of a sham trial?

Obviously that wouldn’t help Sadler’s case, if he’s facing a kangaroo court.
Click to expand...
They haven't become closer they are now China
 
You must log in or register to reply here.
Back
Top