Lo sold 30 million shares in Grand Peace Group Holdings Limited held by her and her daughter on a pre-arranged basis. The transaction was executed on market at prices which Lo knew that they were not the price she privately agreed with the purchaser. The actual terms Lo agreed to dispose the shares included a cash discount payable to the purchaser.
There was no reasonable explanation for the payment of the cash discount and for such a transaction being executed on-market. On-market transactions should reflect what has actually been agreed between the parties.
Transactions with artificially inflated prices and secret discounts are prevailing in many markets (esp. property market). Unfortunately, they are not so regulated like securities market.
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