SFC issues restriction notices to two brokers to freeze client accounts linked to suspected market manipulation

August 10

  • The SFC has issued restriction notices to Gary Cheng Securities Limited (GCSL) and Zhongcai Securities Limited (ZSL), prohibiting them from dealing with or processing certain assets held in five trading accounts, which are related to suspected market manipulation in late April 2020 in the shares of a company listed on the Stock Exchange of Hong Kong Limited.
  • The restriction notices prohibit them, without the SFC’s prior written consent, 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 including:

(i) entering into transactions in respect of any securities; and/or

(ii) processing any withdrawals or transfers of securities and/or cash or any transfers of money arising from the disposal of securities; and/or
(iii) 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.

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 and in the public interest.

Read more: https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR71


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