SYDNEY Jan 14 Australia is seeking to prosecute
a former executive of private Chinese firm Hanlong Mining
Investment Pty Ltd on insider trading charges after he was
arrested in Hong Kong, the country's corporate watchdog said on
The Australian Securities and Investments Commission said
Hui Xiao, also known as Steven Xiao, was detained by Hong Kong
authorities on Sunday, following a request by the Australian
government, which now has 45 days to apply for extradition.
Xiao is wanted in Australia in relation to 104 offences
linked to alleged insider trading ahead of Hanlong's takeover
bids for Australia's Sundance Resources Ltd and
Bannerman Resources Ltd in 2011, the commission said in
Xiao failed to return to Australia in 2011 after he was
cleared to leave on a short visit to Hong Kong during the
insider trading investigation.
Another former Hanlong executive, Bo Shi Zhu, also known as
Calvin Zhu, was sentenced last year to two years and three
months in jail on related charges. Zhu, an Australian citizen,
had pleaded guilty to three counts of insider trading carried
out between 2006 and 2011.
Zhu and Xiao, who stood down from their roles at Hanlong
when the insider trading probe began in September 2011, were
among several Hanlong executives whom ASIC investigated.
Hanlong remains Sundance Resources' biggest shareholder,
though its proposed A$1.4 billion ($1.27 billion) takeover of
Africa-focused Sundance was called off last April after Hanlong
missed a series of funding deadlines.
Uranium miner Bannerman ended talks on a A$143 million offer
from Hanlong in late 2011 on similar funding hurdles.
($1 = 1.1043 Australian dollars)
(Reporting by Jane Wardell and Sonali Paul; Editing by