SFC obtains court order to freeze up to $85.2 million of assets belonging to suspect traders of Wan Cheng shares

The Court of First Instance has granted an interim injunction order in proceedings brought by the Securities and Futures Commission (SFC) under section 213 of the Securities and Futures Ordinance (SFO) against seven defendants who manipulated the shares of Wan Cheng Metal Packaging Company Limited (Wan Cheng) (Note 1). 

Pursuant to the Court order, three defendants are prohibited from (i) removing any of their assets which are within Hong Kong, or (ii) in any way disposing of or dealing with or diminishing the value of any of their assets which are within Hong Kong, up to the value of $85.2 million. The interim injunction order ensures that there are sufficient assets to meet the restoration orders sought by the SFC, if the Court finds the defendants in the proceedings in contravention of the relevant provisions of the SFO.

The interim injunction order remains in effect until the next hearing on 13 March 2026.

This action is part of the SFC’s legal proceedings targeting an alleged sophisticated syndicate, comprising the defendants and other syndicate members, for their suspected orchestration of a complex ramp-and-dump scheme of Wan Cheng shares between 22 December 2020 and 23 April 2021. In parallel, criminal proceedings against four of the defendants are ongoing at the District Court, with the trial scheduled to begin on 14 September 2026 (Note 2).

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Notes:

1. Wan Cheng Metal Packaging Company Limited (stock code: 8291) has changed its name to Hong Kong Entertainment International Holdings Limited from 4 June 2024.

2. Please see the SFC’s press releases dated 3 August 2023, 29 January 2024, 8 February 2024, 27 February 2024, 25 April 2024, 4 October 2024 and 15 April 2025.