Chaoda Modern Agriculture's Chairman Kwok Ho, Chief Financial Officer Andy Chan and Fidelity Management's George Stairs have been accused of insider trading by Hong Kong's financial secretary.

The allegation was disclosed in a notice to Hong Kong's Market Misconduct Tribunal at a hearing on Wednesday, two days after the mainland food producer's shares slumped 27 percent and were suspended on news of the proceedings.

Chaoda's market value has been cut by HK$11.9 billion ($1.5 billion) since a May 26 magazine report alleging it exaggerated its farmland. Chaoda denied the report and said it would sue the publisher Next Magazine. Eric Yip of Christensen, which handles investor relations for the company, didn't respond to a request for comment earlier on Wednesday.

Bloomberg

(HK Edition 09/29/2011 page2)