Ex-Dow Jones Director Resigns From Hong Kong Government

David Li, the Hong Kong banker and politician who recently settled insider-trading charges with U.S. regulators, has resigned from Hong Kong's cabinet.

Li, a former Dow Jones board member, came under pressure to step down from Hong Kong's Executive Council after the Securities and Exchange Commission alleged he was involved in insider trading related to the sale of Dow Jones to Rupert Murdoch's News Corp.(NWS - Cramer's Take - Stockpickr). As a Dow Jones director, Li had approved the sale of the company.

The government of the Chinese region reported Li's resignation on its Web site Saturday.

Li and three others agreed to pay $24 million to settle the charges, and they neither admitted nor denied guilt. But Li "regretted the matter caused public concern and thus wished to resign from the council," said Hong Kong Chief Executive Donald Tsang.

Li, who is chairman and CEO of Bank of East Asia, allegedly tipped off a close friend about the News Corp. deal before it became public last spring. The friend, along with his daughter and son-in-law, allegedly bought about $15 million worth of Dow Jones shares, according to the SEC complaint.

Shares of News Corp. finished Friday's session up 10 cents at $20.05.