Hong Kong court finds former bourse exec not guilty of graft

The brand of Hong Kong Exchanges & Clearing Ltd. (HKEX) is seen on the monetary Central district in Hong Kong, China September 14, 2020. REUTERS/Tyrone Siu/File Photograph

HONG KONG, Dec 3 (Reuters) – A Hong Kong courtroom stated on Friday that Eugene Yeoh, former co-head of IPO vetting on the monetary hub’s inventory alternate operator, was not responsible of receiving bribes to look favourably on itemizing functions.

IPO marketing consultant Richard Lum, who had been accused of paying bribes to Yeoh, was additionally discovered not responsible.

Yeoh’s position at Hong Kong Exchanges and Clearing (0388.HK) (HKEX) was to ensure functions had been compliant with itemizing guidelines and endorse suggestions to the bourse’s itemizing committees, which have the ultimate say on an inventory candidate’s eligibility.

The prosecution had argued Yeoh and Lum had collaborated on at the least 12 IPOs between 2015 and 2019, most on Hong Kong’s junior Progress Enterprise Market, or GEM board.

However decide Gary Lam stated the prosecution had not confirmed Yeoh knew of Lum’s position within the related IPOs.

He additionally stated the prosecution had not confirmed a complete of HK$9.15 million ($1.17 million) Lum had transferred to financial institution accounts belonging to Yeoh’s spouse or the couple’s joint account was a bribe and never for funding functions, because the defence had argued, since Yeoh’s spouse was an funding skilled.

Yeoh left the bourse in Could 2019. He was arrested by Hong Kong’s anti corruption watchdog, the Unbiased Fee Towards Corruption, that very same 12 months.

The choice is that this 12 months’s second important not responsible verdict by a Hong Kong courtroom involving a defendant from the town’s monetary trade arrested by the ICAC.

In January this 12 months, JPMorgan’s former vice chairman of Asia funding banking, Catherine Leung, was discovered not responsible of bribery, with the decide saying Leung had adopted the financial institution’s present procedures.

“The ICAC respects the courtroom ruling. We are going to research the explanations for verdict in session with the Division of Justice,” a spokesperson for the watchdog stated, including it could proceed to collaborate with related regulatory our bodies to fight corruption and misconduct within the monetary market.

An HKEX spokesperson stated the alternate operator has cooperated absolutely with the ICAC in its investigation.

“HKEX promotes the best requirements of integrity and professionalism throughout its numerous enterprise features, and is dedicated to persevering with to play its position in sustaining the integrity of Hong Kong as a number one monetary centre.”

Yeoh and Lum left the courtroom with out making any remark.

($1 = 7.7906 Hong Kong {dollars})

Reporting by Sara Cheng, Writing by Alun John; Modifying by Muralikumar Anantharaman and Kim Coghill

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