CITIC Pacific is said to be under investigation by the Hong Kong police for suspected irregularities in its foreign exchange trading.
Hong Kong media quotes an insider as saying that the Hong Kong police are probing CITIC Pacific's Australian dollar exchange contracts in the hope of finding out why the company has delayed the release of a HKD15.5 billion loss in foreign exchange trade. But the media says that the investigation is still in the early stages and no suspicion falls on any individual so far.
However, a representative from CITIC Pacific has told the local media that there has been no police contact with the company, nor has the company had any further details to disclose.
In October, CITIC Pacific suffered heavy currency losses. Since then, the company has dismissed two financial managers and maintained its stock price with the help of its parent company CITIC.
