Hsinchu International insider trading case set for investigation

The nation's financial regulator said yesterday it will hand over the alleged insider trading case involving Hsinchu International Bank shares (新竹商銀) to prosecutors for further judiciary investigations.

Financial Supervisory Commission chairman Shih Jun-ji (施俊吉) said the commission has detected abnormal trading prior to Standard Chartered's acquisition announcement of the Hsinchu bank two weeks ago.

Shih said the commission's screening system found that the volume of abnormal trading totaled up to 40 million shares and was estimated at NT$400 million (US$12.4 million) since the end of August.

Standard Chartered said on Sept. 29 that it would buy up to a maximum 100 percent stake in Hsinchu International for US$1.2 billion.

According to the commission's statistics, shares of Hsinchu International grew by 30 percent between Sept. 13 and Sept. 29.