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The Securities and Futures Commission (SFC) has issued restriction notices to 14 brokers, prohibiting them from dealing with or processing certain assets held in their client accounts which are related to suspected market manipulation in the shares of Smartac Group China Holdings Limited between October 2018 and March 2019 (Note 1).
The brokers are: Changjiang Securities Brokerage (HK) Limited, Central China International Securities Co., Limited, China Galaxy International Securities (Hong Kong) Co., Limited, Fulbright Securities Limited, GF Securities (Hong Kong) Brokerage Limited, Guosen Securities (HK) Brokerage Company, Limited, Guotai Junan Securities (Hong Kong) Limited, Guoyuan Securities Brokerage (Hong Kong) Limited, HGNH International Securities Co., Limited, Interactive Brokers Hong Kong Limited, KGI Asia Limited, Yue Xiu Securities Company Limited, Yunfeng Securities Limited and Zhongtai International Securities Limited.
The SFC is not investigating these brokers, which have cooperated with the SFC’s 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: (i) entering into transactions for any securities; and/or (ii) processing any withdrawals or transferring of securities and/or cash arising from the disposal of securities; and/or (iii) 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 (iv) 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 considers that the issue of the restriction notices is desirable in the interest of the investing public or in the public interest.
The SFC’s investigation is continuing.
Note:
- The SFC issued the restriction notices pursuant to sections 204 and 205 of the Securities and Futures Ordinance.
