The Securities and Futures Commission (SFC) and the Commercial Crime Bureau of the Police conducted a joint search operation resulting in the arrest of an individual based in Hong Kong for suspected illegal short selling and fraudulent activities. The individual was arrested on suspicion of dealing with proceeds from an indictable offense. The SFC’s investigation revealed that the individual may have used fabricated trading statements to mislead brokerage firms into executing various illegal short sell orders of shares of four Hong Kong-listed companies. The individual made illicit profits of approximately $10.5 million through buying back the shares at lower prices. The suspected short selling took place on six trading days, and the total proceeds from selling the shares of the four listed companies reached $17.7 million. The investigation by the SFC is ongoing.
resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR56