Hui Xiao, also known as Steven Xiao and Jiayi Xiao, the former Hanlong Mining Investment Pty Ltd (Hanlong Mining) managing director, today pleaded guilty to insider trading.

Appearing in Central Local Court via video link, Mr Xiao pleaded guilty to two ‘rolled up’ charges of insider trading involving 65 illegal trades in financial products related to Sundance Resources Limited and Bannerman Resources Limited in July 2011, while he was Hanlong Mining managing director.

Mr Xiao, who has been in custody since his arrest in Hong Kong in January 2014 and his extradition from Hong Kong to Australia in October 2014, also admitted, and will have it taken into account for the purpose of sentencing, a third ‘rolled up’ offence of insider trading involving 37 additional illegal trades related to the July 2011 conduct.

Mr Xiao was initially charged with more than 100 counts of insider trading, including a separate charge for each alleged illegal trade (refer: 14-265MR). Following a number of court hearings and appearances, the charges have now been rolled up however Mr Xiao is admitting all of the offending covered by the previous charges.

Each charge carries a maximum penalty of 10 years jail.

Mr Xiao will be arraigned in the Supreme Court on 2 October 2015. No application for bail was entered.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

Editor's note 1:

On 2 October 2015 the matter was listed for a sentencing hearing on 14 December 2015.

Editor's note 2:

On 14 December 2015, Mr Xiao's sentencing was scheduled for 11 March 2016.

Editor's note 3:

On 11 March 2016, Mr Xiao was sentenced to more than 8 years imprisonment (refer: 16-070MR).