Hong Kong Regulator Lifts Asset Restrictions on Three Brokerage Firms

Hong Kong’s Securities and Futures Commission (SFC) has withdrawn restriction notices previously imposed on three brokerage firms in connection with an investigation into false or misleading disclosures in the financial statements of Hua Han Health Industry Holdings Limited.

The brokers affected are Changjiang Securities Brokerage (HK) Limited, Haitong International Securities Company Limited, and Kingston Securities Limited.

The restriction notices had barred the firms from disposing of or dealing with certain client assets linked to accounts held by Bull’s-Eye Limited (BEL), an investment vehicle associated with Hua Han’s former senior executives, Zhang Yue and Deng Jie. The measures were introduced to preserve assets after the SFC identified misappropriated funds from Hua Han’s fundraising activities that were deposited into BEL’s brokerage accounts.

The SFC lifted the restrictions following the successful prosecution by Hong Kong Police’s Commercial Crime Bureau of Hua Han’s former financial controller and company secretary for money laundering. The case was referred to the police by the SFC.

According to the regulator, the removal of the restriction notices will allow the liquidators of BEL, which is currently under liquidation, to distribute the previously frozen assets to affected parties.

The SFC said the three brokerage firms were not subjects of the investigation. The restriction notices did not affect their operations or other clients.