The Securities and Futures Commission (SFC) has issued restriction notices to nine 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 China Ding Yi Feng Holdings Limited (China Ding Yi Feng) between 2018 and early 2019 (Notes 1 & 2).
The brokers are: Central China International Securities Co., Limited, CMB International Securities Limited, HGNH International Securities Co., Limited, Kaisa Securities Limited, Sun Hung Kai Investment Services Limited, Tian Yuan Finance Limited, Victory Securities Company Limited, Yue Xiu Securities Company 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.
Notes:
- Please see the SFC's press release dated 20 March 2019.
- The SFC issued the restriction notices pursuant to sections 204 and 205 of the Securities and Futures Ordinance.
