• HK SFC conducted a joint search operation with the Commercial Crime Bureau of the Police, against an individual suspected of illegal short selling and fraudulent activities.

Allegation

• Individual used fabricated statements to deceive 2 brokerage firms, was arrested of dealing with property known or believed to represent proceeds of indictable offense.
• The statements falsely indicated ownership of shares in 4 Hong Kong-listed companies.
• He had executed illegal short sell orders for these shares, despite not owning them.
• Illegal short selling occurred over 6 trading days, resulted in proceeds of HKD 17.7mn.
• He repurchased at lower prices on same days, generating illicit profits of HKD 10.5mn.