The Court of First Instance has granted an interim injunction order against four suspected manipulators of the shares of KNT Holdings Limited (KNT) in legal proceedings brought by the Securities and Futures Commission (SFC) under section 213 of the Securities and Futures Ordinance (SFO) (Note 1).
Pursuant to the Court order, the four suspects, who allegedly manipulated KNT shares between 28 February 2019 and 15 May 2019, are prohibited from disposing of, dealing with, diminishing the value of, or removing from Hong Kong, assets in certain real properties, securities, bank and insurance accounts that they own, up to the value of around $219 million.
The interim injunction order ensures that there will be funds available to meet any future order by the Court, including compensation to affected investors in the case if the Court finds that the suspected manipulators contravened provisions of the SFO. It remains in effect up to the determination of the SFC’s section 213 proceedings or further order of the Court.
In parallel, this interim injunction order and the SFC’s section 213 proceedings are part of a broader enforcement action against the alleged ramp-and-dump market manipulation in KNT shares. Three of the four suspected manipulators concerned are among the 12 defendants in ongoing criminal proceedings, while the remaining suspect is subject to an arrest warrant (Note 2).
The trial of the criminal proceedings will commence at the District Court on 6 April 2027. The defendants were charged with various offences, including the offence of conspiracy to defraud or alternatively, the offence of conspiracy to employ a scheme with intent to defraud or deceive in securities transactions under common law, the SFO and/or the Crimes Ordinance for the same alleged misconduct; and/or money laundering under the Organized and Serious Crimes Ordinance (Note 3).
Notes:
- KNT (Stock Code:1025) was listed on the Main Board of the Stock Exchange of Hong Kong Limited on 28 February 2019.
- Please see the press releases of the SFC dated 30 September 2022, 24 November 2022, 19 June 2024, 9 July 2024, 6 August 2024, 12 November 2024, 25 March 2025 and 26 September 2025.
- (i) Section 300 of the SFO and sections 159A and 159C of the Crimes Ordinance; and (ii) dealing with property known or believed to represent proceeds of indictable offence, contrary to sections 25(1) and 25(3) of the Organized and Serious Crimes Ordinance.
