Hong Kong’s SFC launches proceedings against CMBC Capital over late disclosure of inside info

Maria Nikolova

The SFC has also commenced proceedings in the MMT against six former directors of the company.

The Hong Kong Securities and Futures Commission (SFC) today announces that it has commenced proceedings in the Market Misconduct Tribunal (MMT) against CMBC Capital Holdings Limited and its former directors for late disclosure of inside information.

CMBC Capital was known as Mission Capital Holdings Limited (Mission Capital) when the alleged breach of the statutory corporate disclosure requirements occurred.

The SFC has also launched proceedings in the MMT against six former directors of Mission Capital for their reckless or negligent conduct resulting in the company’s alleged breach of the provisions of the corporate disclosure regime and for failing to take all reasonable measures to ensure that proper safeguards exist at the material time to prevent the alleged breach. The six former directors of Mission Capital at the material time include Mr Philip Suen Yick Lun, former Chief Executive Officer and Company Secretary, Mr Paul Suen Cho Hung, former Chairman, Mr Lau King Hang, former Executive Director, as well as three former Independent Non-Executive Directors, Mr Huang Zhencheng, Mr Weng Yixiang and Mr Wong Kwok Tai (Directors).

The SFC has found that on October 13, 2014, the Directors received through email the unaudited consolidated management accounts of Mission Capital for the five months ended August 31, 2014. These accounts revealed that Mission Capital made a cumulative profit for the five months ended August 31, 2014 of $838 million, representing a significant improvement in financial performance against an interim loss of $12 million for the six months ended September 30, 2013 and an annual profit of $417 million for the 12 months ended March 31, 2014.

The improvement in financial performance was not made public until November 7, 2014 when Mission Capital issued a profit alert announcement in relation to its financial performance for the six months ended September 30, 2014.

The SFC alleges that the information relating to the financial performance of Mission Capital for the first five months ended August 31, 2014 as contained in the August Management Accounts constituted inside information, and as such, the information should have been disclosed as soon as reasonably practicable after it was available to the Directors on October 13, 2014.

Read this next

Retail FX

Lion launches multi-currency trading accounts powered by AI

The core advantages of multi-currency trading account services include enabling significant cost savings and higher efficiency for investors.

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

Market News

AUD/USD Soars Following Inflation Report

Australia’s CPI surge hints at prolonged tight monetary policy. Watch the Aussie dollar as US economic data looms.

Institutional FX

GCEX reports drop in turnover in 2023 due to crypto winter

“The crypto winter had a huge impact across the industry, and GCEX was no exception. However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams such as introducing staking services for institutional and professional clients.”

Institutional FX

FxGrow taps Integral’s SaaS brokerage workflow

“FxGrow’s decision to partner with us is indicative of the growing advantage for brokers to leverage tier-one institutional-grade technology while maintaining control over their own platform. Integral is well-positioned to provide the SaaS solutions that will enable these businesses to better compete in the market.”