SFC and ICAC conduct joint operation against suspected market manipulation syndicate and Restriction Notices issued by the SFC to six brokers to freeze client accounts

enforcement

The Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC) conducted a joint operation targeting two companies listed on The Stock Exchange of Hong Kong. The investigation focused on suspected share manipulation between December 2022 and August 2023. The ICAC arrested a key member of the suspected syndicate under the Prevention of Bribery Ordinance. The syndicate is believed to have artificially inflated the share prices of the listed companies to increase their market capitalization. They aimed to include the companies in major market indices and profit by selling shares at inflated prices. One syndicate member allegedly bribed two senior executives to spread false information. The SFC issued restriction notices to six brokers involved, preventing them from dealing with assets in eight trading accounts linked to one of the listed companies. The investigation is ongoing, and no further comments will be provided.

Resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR97

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