The insider trading case at Dow Jones & Company has led to the resignation of one of Hong Kong’s Executive Council members. David Li, the chairman and chief executive of family-owned Bank of East Asia, told ExCo chief executive Donald Tsang that “he regretted that the matter had caused public concern and thus wished to resign from the Council.”
Li paid an $8.1 million civil penalty to the US Securities and Exchange Commission in early February to settle the case, in which he and three other individuals were accused of illegal tipping and trading in the securities of Dow Jones in the weeks before the public disclosure of an unsolicited acquisition offer by News Corporation. Li neither admitted nor denied the SEC’s allegations. (Click here to read the story in full.)
Commenting on the resignation, Tsang – who asked Li to seriously reconsider his decision – said that he appreciated his ex-colleague’s situation and his priority accorded to the overall interest of the community.
“I respect Mr Li’s decision and have accepted his resignation,” said Tsang. “Since he became an ExCo member in 2005, he has given invaluable advice and contributed to the Special Administrative Region Government's effective governance. I will miss him greatly and hope that he will continue to serve Hong Kong in other areas.”