Retail trader sentenced in SFC’s false trading case

The Eastern Magistrates’ Courts today sentenced Mr Ng Ka Hei to 220 hours of community service following his conviction of false trading in the shares of six Hong Kong-listed companies in a criminal prosecution brought by the Securities and Futures Commission (SFC) (Notes 1 to 3).

The Court also ordered Ng to pay a fine of $117,715, a sum equivalent to the total profit he made from his false trading activities, and to pay the SFC’s full investigation costs of $199,669.

Between 20 September 2022 and 24 October 2024, Ng made profits by selling shares at artificially high prices he created through “scaffolding” and wash trading. He placed and cancelled trading orders at increasing prices and traded between his various securities accounts as both buyer and seller.

In sentencing, Deputy Magistrate Mr Chu Chung Keung stressed the gravity of Ng’s offences, and the Court had considered imposing immediate imprisonment. However, after reviewing the probation officer’s suitability report, the Court decided to impose a community service order, with the expectation that Ng would appreciate the opportunity for rehabilitation.

The SFC’s Executive Director of Enforcement, Mr Michael Duignan, said: “False trading undermines investor confidence in the market. The SFC is committed to taking resolute action against such misconduct to protect market participants and uphold the integrity of Hong Kong’s securities markets.”

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Notes:

1. The six companies were listed on the Main Board of The Stock Exchange of Hong Kong Limited.

2. False trading constitutes an offence contrary to section 295 of the Securities and Futures Ordinance.

3. Please see the SFC’s press release dated 22 January 2026.