The Eastern Magistrates’ Court today convicted well-known movie producer Mr Wong Pak Ming of insider dealing in the shares of Pegasus Entertainment Holdings Limited (Pegasus) in a criminal prosecution brought by the Securities and Futures Commission (SFC) (Note 1). The conviction, after a 16-day criminal trial, arises from Wong’s deliberate misuse of inside information acquired through his role as chairman and controlling shareholder of Pegasus and his decision to advise his

The Securities and Futures Commission (SFC) today issued a circular setting out the expected controls for account opening and maintenance of client relationships. The circular follows the SFC’s review of the account opening practices of 12 securities brokers. The review identified significant deficiencies, including inadequate due diligence on account opening documentation, the acceptance of questionable or forged documents during the account opening process, and weaknesses i

The Securities and Futures Commission (SFC) urges the investing public to stay highly vigilant against sophisticated fraudulent schemes that exploit the name of the Investor Compensation Fund (ICF) to target investors who have already suffered losses, often defrauding them a second time (Note 1). In recent cases reported to the SFC, fraudsters targeted individuals who had previously suffered investment losses – often from schemes orchestrated by the same syndicates – and fals

The Securities and Futures Commission (SFC) has obtained a disqualification order in the Court of First Instance (Court) against Mr Poon Tsz Hang, the former financial controller and company secretary of Qunxing Paper Holdings Company Limited (Qunxing) (Notes 1 and 2). Under the Court order, Poon is disqualified for two years from being a director, liquidator, receiver or manager of the property or business, and being involved in the management of any listed or unlisted corpo

The Securities and Futures Commission (SFC) has obtained disqualification orders with durations of up to 33 months in the Court of First Instance against four former directors of China Candy Holdings Limited (China Candy) over their negligence in failing to uncover the overstatements in the company’s financial records and in discharging their duties as directors (Notes 1 and 2). The four former directors of China Candy named in the SFC’s legal proceedings are: Ms Li Yuna and

The Securities and Futures Commission (SFC) has commenced legal proceedings in the Court of First Instance against Mr Wong Ho Yin, a former director of China Automotive Interior Decoration Holdings Limited (China Automotive) and its subsidiary Giant Faith Holdings Limited (Giant Faith), and Ms So Lung Ying, the former general manager of Giant Faith, for alleged breaches of fiduciary duties involving purported fictitious transactions and wrongful payments (Notes 1 to 3). The S

The Securities and Futures Commission (SFC) has commenced legal proceedings in the Court of First Instance against Mr Wong Ho Yin, a former director of China Automotive Interior Decoration Holdings Limited (China Automotive) and its subsidiary Giant Faith Holdings Limited (Giant Faith), and Ms So Lung Ying, the former general manager of Giant Faith, for alleged breaches of fiduciary duties involving purported fictitious transactions and wrongful payments (Notes 1 to 3). The S

The Securities and Futures Commission (SFC) has reached an agreement with PricewaterhouseCoopers Hong Kong (PwC HK) under which PwC HK has agreed to set aside HK$1 billion to compensate eligible independent minority shareholders of China Evergrande Group (China Evergrande) (Note 1). PwC HK audited China Evergrande’s financial statements for the fiscal years ended 31 December 2019 and 31 December 2020 (FY2019 and FY2020 respectively). The SFC’s investigation, which focused on