SFC Hong Kong Issues Restriction Notices to Five Brokers

The Securities and Futures Commission (SFC) of Hong Kong announced that it has issued restriction notices to five brokers to prohibit them from dealing with or processing certain assets held in 12 trading accounts related to suspected market manipulation in the shares of a company listed on the Stock Exchange of Hong Kong Limited between September 2020 and October 2020.

The five brokers are AMC Wanhai Securities Limited, Eddid Securities and Futures Limited, Freeman Securities Limited, Realord Asia Pacific Securities Limited and Solomon JFZ (Asia) Holdings Limited.

Without the SFC's prior written consent, the brokers are prohibited from disposing of or dealing with, or assisting, counselling or procuring another person to dispose of or deal with, any assets in any way in the trading accounts up to a certain amount.

Specific prohibitions include:

• Entering into transactions in respect of any securities;

• Processing any withdrawals or transfers of securities and/or cash or any transfers of money arising from the disposal of securities;

• Disposing of or dealing with any securities and/or cash on the instructions of any authorized person of the accounts or any person acting on their behalf;

• ​Assisting another person to dispose of or deal with any relevant property in a specified 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.