Newsletter – April 2019

Content
  1. SFC commences insider dealing prosecution against legal adviser
  2. Former director of DBA Telecommunication (Asia) Holdings Limited convicted of issuing false or misleading announcement
  3. Market Misconduct Tribunal fines Fujikon, its CEO and CFO HK$1.5 million in total for late disclosure of inside information
  4. SFC reprimands and fines Nine Masts Capital Limited HK$1.2 million over naked short selling
  5. SFC bans former responsible officer of Guosen Securities (HK) Brokerage Company, Limited for 10 months
  6. Retrial of insider dealing case after Court of Final Appeal dismisses leave application to appeal
1.     SFC commences insider dealing prosecution against legal adviser

On 11 April 2019, the SFC commenced criminal proceedings in the Eastern Magistrates’ Court against Mr. Leung Pak Keung, a practising solicitor, over alleged insider dealing in the shares of CASH Financial Services Group Limited.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR30

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2.      Former director of DBA Telecommunication (Asia) Holdings Limited convicted of issuing false or misleading announcement

On 11 April 2019, the Eastern Magistrates’ Court convicted Mr Chan Wai Chuen, former chief financial officer, company secretary and an executive director of DBA Telecommunication (Asia) Holdings Limited for his role in a false or misleading statement in DBA’s announcement in a prosecution brought by the SFC.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR31

For the SFC’s press release dated 28 June 2018, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR73

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3.     Market Misconduct Tribunal fines Fujikon, its CEO and CFO HK$1.5 million in total for late disclosure of inside information

On 12 April 2019, the Market Misconduct Tribunal (“MMT”) found that Fujikon Industrial Holdings Limited, the company’s chairman and chief executive officer, Mr Yeung Chi Hung, and its chief financial officer and company secretary, Ms Chow Lai Fung, had failed to make timely disclosure of inside information following proceedings brought by the SFC.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR27

For the SFC’s press release dated 10 April 2018, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR38

For the MMT Report, please refer to:

https://www.mmt.gov.hk/eng/reports/reports.htm

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4.      SFC reprimands and fines Nine Masts Capital Limited HK$1.2 million over naked short selling

On 18 April 2019, the SFC reprimanded and fined Nine Masts Capital Limited HK$1.2 million for failures relating to the short selling of Yuzhou Properties Company Limited shares in May 2015.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR32

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR32&appendix=0

5.      SFC bans former responsible officer of Guosen Securities (HK) Brokerage Company, Limited for 10 months

On 23 April 2019, the SFC prohibited Mr Su Xiqiang, former head of retail brokerage and responsible officer of Guosen Securities (HK) Brokerage Company, Limited, from re-entering the industry for 10 months from 17 April 2019 to 16 February 2020.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR33

For the SFC’s press release dated 18 February 2019, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR10

For the SFC’s circular on Compliance with Anti-Money Laundering / Counter Financing of Terrorism requirements dated 26 January 2017, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/circular/aml/doc?refNo=17EC9

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR33&appendix=0

6.      Retrial of insider dealing case after Court of Final Appeal dismisses leave application to appeal

On 26 April 2019, the Court of Final Appeal dismissed the application of Mr Cheng Chak Ngok, former executive director, chief financial officer and company secretary of ENN Energy Holdings Limited, for leave to appeal against the judgment of the Court of Appeal on the retrial of alleged insider dealing in the shares of China Gas Holdings Limited by Cheng.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR36

For the SFC’s press release dated 25 July 2016, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=16PR72

For the SFC’s press release dated 27 March 2017, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR41

For the SFC’s press release dated 11 September 2018, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR105

The article is for general information purpose only and is not intended to constitute legal or other professional advice.

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