The Securities and Futures Commission of Hong Kong has prohibited Mr Shiu Kin Keung, the former chief executive officer of China Rise Securities Asset Management, and Mr Wat Hin Pong, the firm's former head of dealing, from various work in financial services.

The two men are banned until 29 July 2022 and 29 October 2020 respectively.

Between 1 January and 31 May 2014 China Rise failed to detect and prevent illegal short-selling activities by its staff and ensure the fair treatment of clients who might have suffered from the absence of internal controls to monitor cross trades between its staff members and clients which gave rise to conflicts of interest. It also did not report direct business transactions (i.e. cross trades) to the Stock Exchange of Hong Kong in accordance with its Rule 526.

Shiu placed 199 uncovered short selling orders in 21 listed securities for his personal account and the discretionary account of a client on 24 trading days. On each occasion, he bought back enough securities to square off his position before day-end. He did not inform or consult the client before placing the short selling orders for the client’s account. He later pled guilty to 14 specimen charges and was convicted of breaking s170 Securities and Futures Ordinance, fined HK$35,000 (US$4,464) and ordered to pay the SFC’s investigation costs.

Part of Wat's job was to monitor employees' dealings, including the personal dealings of Shiu. He failed to detect the short sale and to notice that Shiu did not always obtain approval before trading for his personal account, which was against China Rise’s employee dealing policy. He was also paid to supervise Shiu’s operation of clients’ discretionary accounts.

Wat sent Shiu a warning letter in early April 2014 but continued to rubber-stamp Shiu’s personal dealings.

Shiu was licensed in accordance with the Securities and Futures Ordinance and was a "responsible officer" in respect of its Type 1 (dealing in securities) regulated activity from 28 August 2009 to 27 April 2015, Type 4 (advising on securities) regulated activity from 14 February 2014 to 27 April 2015, and Type 9 (asset management) regulated activity from 14 February to 14 October 2014.

Wat was a "responsible officer" in respect of Type 1 (dealing in securities) regulated activity from 28 August 2009 to 3 February 2017. He is currently accredited to Canfield Securities Company Limited as a "responsible officer" in respect of its Type 1 (dealing in securities) regulated activity.