Nine HK brokerages get restriction notices over suspected market manipulation of China Ding Yi Feng shares

Maria Nikolova

Hong Kong’s SFC issues restriction notices to nine brokers to freeze client accounts linked to suspected market manipulation of China Ding Yi Feng shares.

Hong Kong’s Securities and Futures Commission (SFC) today announces the issue of restriction notices to nine brokerages, prohibiting them from dealing with or processing certain assets held in their clients’ accounts which are related to suspected market manipulation in the shares of China Ding Yi Feng Holdings Limited between 2018 and early 2019.

The nine brokers are: Futu Securities International (Hong Kong) Limited, GF Securities (Hong Kong) Brokerage Limited, Guotai Junan Securities (Hong Kong) Limited, Haitong International Securities Company Limited, Orient Securities (Hong Kong) Limited, SBI China Capital Financial Services Limited, Shenwan Hongyuan Securities (H.K.) Limited, Sun Hung Kai Investment Services Limited, and Yunfeng Securities Limited.

The SFC is not investigating these nine brokers, which have cooperated with the regulator in its ongoing investigation. The restriction notices do not affect their operations or their other clients.

The restriction notices prohibit them, without the SFC’s prior written consent, from disposing of or dealing with, assisting, counselling or procuring another person to dispose of or deal with any assets in any way in the client accounts, including:

  • entering into transactions for any securities; and/or
  • processing any withdrawals or transferring of securities and/or cash arising from the disposal of securities; and/or
  • disposing of or dealing with any securities or cash on the instructions of any authorized persons of the client accounts or by any persons acting on their behalf; and/or
  • assisting another person to dispose of or deal with any relevant property in the client accounts in any manner. 

The brokers are also required to notify the SFC if they receive any of these instructions.

The SFC says that the issue of the restriction notices is desirable in the public interest.

The SFC explains that China Ding Yi Feng, listed under Chapter 21 of the Main Board Listing Rules of The Stock Exchange of Hong Kong Limited, was eligible for trading by both Mainland and Hong Kong investors via Shenzhen-Hong Kong Stock Connect. The SFC suspended trading of China Ding Yi Feng’s shares on March 8, 2019 as part of the regulatory investigation which started in mid-2018 into the suspicious trading in China Ding Yi Feng’s shares which appeared to create a false market in the company’s shares leading to an irrationally high share price. The SFC’s main concern related to whether an orderly and fair market for China Ding Yi Feng’s shares existed.

Read this next

Opinion

Is the Bank of England facing another storm? Op-Ed by Stuart Cole, macro economist at Equiti Capital

An analysis and opinion editorial by Stuart Cole, macro economist at Equiti Capital, 3 October 2022 on what triggered the UK gilt market sell-off and is the Bank of England facing another storm?

Industry News

Kim Kardashian fined $1 million for touting EMAX tokens on social media

“Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information.”

Retail FX

INFINOX launches IX Exchange platform with +20,000 markets in UK

“The launch of IX Exchange is a statement of intent for our growth strategy and a game-changer for our clients’ trading potential.”

Retail FX

Saxo issues gloomy report for Q4 2022 and beyond

Globalisation was the biggest driver behind low inflation over the past 30 years and instrumental for emerging markets and their equity markets. Globalisation in reverse will cause turmoil for trade surplus countries, put upward pressure on inflation and threaten the USD as the reserve currency.

Executive Moves

ICE appoints Caterina Caramaschi to oversee interest rates and equity derivatives

“As the head of a product set covering some of the biggest interest rate and equity derivative benchmarks, at a time when investor’s priorities are firmly focused on interest rate changes and the outlook for global economies, Caterina’s two decades of financial market experience, and the relationships cultivated during that, will be invaluable in developing these products to the benefit of our customers.”

Retail FX

Plus500 sponsors Chicago Bulls ahead of trading platform launch in United States

Plus500 has signed a major multi-year sponsorship deal to become an official global partner of iconic NBA team Chicago Bulls. 

Technology

Polygon.io adds stock options APIs to market data platform that includes FX and Crypto

Polygon.io has launched a new set of stock options APIs to its entirely self-serve real-time data APIs, which includes stocks, crypto, forex, and options APIs free to use.

Market News

What’s in store for markets this week!

After The UK government unveiled their top tax rate cut, setting fire to GBP Cross pairs, prompting an intensive sell-off on the cable

Podcasts

FinanceFeeds Podcast Ep. #7: Exness’s Elena Krutova shares how to recruit the best talent in FX

FinanceFeeds is delighted to announce the release of the FinanceFeeds Podcast’s seventh episode featuring Elena Krutova, Chief People Officer of Exness, the renowned FX and CFD broker headquartered in Cyprus.

<