A Hong Kong court on Friday ordered US-based hedge fund Tiger Asia Management LLC and two of its senior officers to pay HK$45.3 million ($5.8 million) to some 1,800 local and overseas investors. The said investors were victims of Tiger Asia's insider trading involving two Hong Kong listed banks.
Wall Street Journal, citing a statement by Hong Kong's Securities and Futures Commission, said that the court orders came after Tiger Asia's admission of the allegation.
Tiger Asia's Bill Hwang and Raymond Park admitted using insider information to trade stocks of Bank of China Ltd. and China Construction Bank Corp. in 2008. They also admitted manipulating the share price of China Construction Bank in 2009. Hwang is Tiger Asia's founder, while Park is an officer of the hedge fund, the report said.
No charges have been filed against Tiger Asia in Hong Kong. Last December, the hedge fund agreed to pay $44 million to settle civil allegation by the US securities regulator that it engaged in insider trading, WSJ said.
Tiger Asia has changed the company name to Archegos Capital Management LLC in February. It is registered in the US, but specializes in the trading of Chinese, Japanese and Korean stocks. All of its employees are located in New York, the report said.
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