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SFC suspects market manipulation and freezes broker's clients' accounts

Chris Hamblin, Editor, London, 8 September 2020

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The Securities and Futures Commission of Hong Kong has issued a restriction notice to wealth manager Shenwan Hongyuan Securities (HK) Ltd, prohibiting it from dealing with or processing certain assets held in four trading accounts. The regulator believes that these could be related to market manipulation in the shares of a company listed on the Stock Exchange.

The Securities and Futures Commission of Hong Kong has issued a restriction notice to wealth manager Shenwan Hongyuan Securities (HK) Ltd, prohibiting it from dealing with or processing certain assets held in four trading accounts. The regulator believes that these could be related to market manipulation in the shares of a company listed on the Stock Exchange.

The restriction notice prohibits Shenwan Hongyuan, without the SFC’s prior written consent, from disposing of or dealing with these securities. The ban extends to:

  • embarking on transactions to do with them;
  • processing any withdrawals or transfers of the securities and/or cash or any transfers of money arising from their disposal; and
  • disposing of or dealing with them on the instructions of any authorised person of the accounts or any person acting on his behalf.

The SFC says that it is acting in the interests of the investing public and an investigation is in progress.

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