Transparency of Information in the Market: The Citic Case Before the Market Misconduct Tribunal

Abstract

This paper identifies some of the more important issues raised by the finding of the Market Misconduct Tribunal that CITIC's non-disclosure of price sensitive information at a time when it made a no material adverse change statement did not amount to market misconduct for the purposes of section 277 of the Securities and Futures Ordinance. It is suggested that the causal relationship between 'no change' public announcements and maintenance is inadequately explored, and that the Tribunal's interpretative process and approach to the listing rules is inappropriately circumscribed. The case has left the market in an unsatisfactory situation in a number of regards.