CAO parent fined for insider trading
22 August 2005
The Beijing-backed parent of China Aviation Oil (Singapore) Corp has agreed to pay a US$4.8 million civil penalty for insider trading in connection with the near-collapse of its Singapore-based subsidiary in the city-state's worst financial scandal in a decade, according to media reports. China Aviation Oil Holding Co (CAOHC), an arm of the Beijing government that dominates China's aviation fuel sector, admitted it broke the law last October when it sold a 15% stake in CAO for US$110 million shortly before CAO collapsed without disclosing the huge losses that it was facing in connection with its risky oil trades.
