Hong Kong Securities And Futures Commission: Market Misconduct Tribunal Sanctions Li Yik Shuen For Insider Dealing In Meadville Holdings Limited Shares

The Market Misconduct Tribunal (MMT) has ordered that Ms Li Yik Shuen be banned from dealing in securities in Hong Kong for two years, effective from 2 February 2021, after finding her culpable of engaging in insider dealing in the shares of Meadville Holdings Limited (Meadville) following proceedings brought by the Securities and Futures Commission (SFC) (Notes 1 to 3).

The MMT has also issued a cease and desist order against Li not to engage in insider dealing again in the future (Note 4).

Li has been ordered to disgorge her profit of $546,817.43 from insider trading in Meadville shares and to pay the SFC’s investigation and legal costs, as well as the costs of the MMT proceedings (Notes 5 & 6).

Separately, the MMT determined that Mr Tom Tang Chung Yen, the former chairman and an executive director of Meadville, did not engage in market misconduct but declined to make a cost order in his favour.  Having regard to Tang’s conduct during the SFC’s investigation and the proceedings, the MMT is satisfied that:

• the SFC was justified in pursuing their enquiries in respect of Tang;
• Tang’s conduct, in whole or in part, caused the institution of the proceedings against him; and
• Tang’s conduct, in whole or in part, caused the MMT to investigate or consider his conduct during the proceedings.

Notes:

1. The MMT was heard before the MMT Chairman, the Honourable Mr Justice Michael Lunn, and two lay members, Ms Jacqueline Koo Tze-ling and Mr Jonathan Lee Tsung-wah. Please see the SFC’s press releases dated 16 September 2019 and 14 December 2020.
2. A report which sets out the reasons of making the relevant orders is available on the MMT’s website (www.mmt.gov.hk).
3. Under section 257(1)(b) of the Securities and Futures Ordinance (SFO), an order has the effect of prohibiting a person who is the subject of the order from any dealings, directly or indirectly, in the Hong Kong financial market for the length of the order.
4. Under section 257(1)(c) of the SFO, an order to prohibit a person who is the subject of the order not to engage in any form of market misconduct in the future.  
5. Under section 257(1)(d) of the SFO, an order that the person shall pay to the Government an amount of any profit gained or loss avoided by the person as a result of the market misconduct in question.
6. Under sections 257(1)(e) and (f) of the SFO, orders that a person shall pay costs incurred by the Government and the SFC.