Hearing fixed for first criminal prosecution in District Court against securities fraud involving illegal short selling under SFO

The Eastern Magistrates’ Courts today granted an application by the Department of Justice to transfer a securities fraud case brought by the Securities and Futures Commission (SFC) to the District Court for criminal proceedings.

This marks the first time in which a criminal prosecution for securities fraud involving illegal short selling under section 300 of the Securities and Futures Ordinance (SFO) will be held in the District Court.

The first hearing in the District Court will take place on 9 April 2026.

The two defendants in the case, Mr Chan Hoi Shing and Mr Li Po Ching, allegedly employed a fraudulent scheme involving illegal short selling in the shares of 28 Hong Kong-listed companies, in contravention of section 300 of the SFO (Note 1).

At today’s hearing, the Court extended bail to Chan and Li on these conditions: (i) not to leave Hong Kong; (ii) surrender all travel documents; (iii) regular reporting to the police station; (iv) cash bail of $280,000 each; and (v) reside at the reported residential address and inform the Police of any change of residential address.

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Note:

1. Please see the SFC’s press release dated 6 November 2025.