Parade Technologies Ltd (譜瑞), a fabless semiconductor company that specializes in integrated display and display interface solutions, yesterday denied that it had colluded with fund managers to manipulate the company’s share price.
The denial came after the Chinese-language Apple Daily reported yesterday that major shareholders of Parade Technologies had allegedly colluded with fund managers at local securities investment trust firms to manipulate its share price between April 1 and July 31.
The company dismissed the allegations in a statement to the Taiwan Stock Exchange, after its shares hit their down-limit and closed at NT$209 yesterday.
Parade Technologies spokesman Chang Yo-ming (張佑銘) told a press conference later yesterday that an internal investigation by the company did not reveal any illegal share transactions by major shareholders, board members or senior executives during the period cited by Apple Daily in the report, local cable TV network UBN quoted him as saying.
The issue follows hot on the heels of an investigation by financial regulators into allegations that former ING Securities Investment and Trust Co (ING SITC, 安泰投信) vice president Sam Hsieh (謝青良) and his peers had used the government’s Labor Insurance Fund and Labor Pension Fund to make huge profits from the manipulation of the share price of Ablerex Electronics Co (盈正豫順電子).
Like Ablerex, Parade Technologies is a small company with a registered capital of less than NT$1 billion (US$34.3 million). Some small-cap stocks have become the targets of recent scandals. Several discretionary account managers for the government’s state funds had allegedly found it easy to manipulate such companies’ share prices, prompting the government to restrict the fund managers’ purchases of such shares.