Caproasia’s Post

Hong Kong SFC starts Market Misconduct Tribunal (MMT) proceedings against the ex-Chairman of investment group Ding Yi Feng Holding (Sui Guangyi) & 20 individuals of suspected market manipulation to create false or misleading appearance of active trading in 2018.  The trading of Ding Yi Feng Holding was suspended in 2019 & resumed in 2020.  Ding Yi Feng Holding current market value is around $152 million (28/3/24).  Sui Guangyi owns around 22.26% of Ding Yi Feng. Read - https://lnkd.in/dBjdhk7B follow Caproasia | Driving the future of Asia The Hong Kong Securities and Futures Commission (SFC) has started Market Misconduct Tribunal (MMT) proceedings against the ex-Chairman of investment group Ding Yi Feng Holding (Sui Guangyi) & 20 individuals of suspected market manipulation to create false or misleading appearance of active trading in 2018.  The trading of Ding Yi Feng Holding was suspended in 2019 & resumed in 2020.  Ding Yi Feng Holding current market value is around $152 million (28/3/24).  Sui Guangyi owns around 22.26% of Ding Yi Feng.  Hong Kong SFC: “The Securities and Futures Commission (SFC) has commenced proceedings in the Market Misconduct Tribunal (MMT) against Mr Sui Guangyi, former chairman and non-executive director of Ding Yi Feng Holdings Group International Limited (Ding Yi Feng), and 20 other individuals (Notes 1 and 2).  The SFC alleges that between 1 March 2018 and 14 September 2018, Sui and the other individuals conducted manipulative trading and a significant number of matched trades in Ding Yi Feng shares to, among other things, create a false or misleading appearance of active trading in the shares and the price of the shares (Note 3). By doing so, the overall trading volume was significantly increased, thereby creating a false impression of larger market liquidity of Ding Yi Feng shares and misleading other market participants in their decision making.  Trading in Ding Yi Feng shares were suspended on 8 March 2019 at the direction of the SFC and resumed on 23 January 2020 when the SFC announced that it was commencing proceedings (Note 4).  The SFC also had issued restriction notices to freeze client accounts linked to the suspected market manipulation of Ding Yi Feng shares. The restriction notices remain in force (Note 5).  The SFC appreciates the support and assistance provided by the China Securities Regulatory Commission during the investigation.” 

Might the City of London be concerned about the report of the Australian Securities and Investment Commission (ASIC) “started investigating the seismic shift of capital from public markets towards private equity”? Refer to https://lnkd.in/g7j-jkck as reported by the Australian Financial Review on June 5. A possible contributing factor to this "seismic shift" is set out in my letter published in the Australian Review today (June 12) under the heading: "ASX follows dysfunctional guidelines" The dysfunctional and ethically blind Global Corporate Governance Principles of the International Corporate Governance Network – which the ASX largely follows – can help explain the global decline in publicly listed firms reported in (“Red tape driving capital from ASX”). Evidence of ethical blindness arises from describing listed firms as being “public” when security exchanges default rules are to keep private the identity of beneficial owners. This protects brokers trading against their clients, short sellers, market manipulators, money-launderers, bribery, financing terrorists, and other socially undesirable activities. Non-disclosure of beneficiaries denies the fundamental rule in business of knowing whom you are dealing with. It makes a lie of describing listed companies as being “public” when their individual owners are kept secret. It also makes stock exchanges more dysfunctional – as their main purpose for existing is to provide a public price discovery service. Price discovery is already significantly jeopardised by private off-market trading described as “dark pools”. In the US last year there are more private companies (5724) who revealed their beneficial owners because they possess employee share plans that there were listed firm on both the NASDAQ and the NYSX. Shann Turnbull Paddington, NSW

Hong Kong SFC & HKEX take joint enforcement action against 2 ex-directors of Hong Kong Exchange GEM-listed company Global Uin Intelligence for misconduct by paying $750,000 for IPO consultancy services in 2020 but payment was rerouted to joint bank account of 2 the ex-directors.  The 2 directors are Singapore-based Aris Goh Leong Heng & Anita Chia Hee Mei who are founders & controlling shareholders of Global Uin Intelligence. Read - https://lnkd.in/gCmbnmpn follow Caproasia | Driving the future of Asia he Hong Kong Securities & Futures Commission (SFC) and Hong Kong Stock Exchange (HKEX) have taken joint enforcement action against 2 ex-directors of Hong Kong Exchange GEM-listed company Global Uin Intelligence for misconduct by paying $750,000 (S$1 million) for IPO consultancy services in 2020 but payment was rerouted to joint bank account of 2 the ex-directors.  The 2 directors are Singapore-based Aris Goh Leong Heng & Anita Chia Hee Mei who are founders & controlling shareholders of Global Uin Intelligence.  Actions: “The statements in respect of Mr Goh and Ms Chia (EDs) above are made in addition to a public censure against them. The Director Unsuitability Statement is a statement that, in the Exchange’s opinion, Mr Goh and Ms Chia are unsuitable to occupy a position as director or within senior management of the Company or any of its subsidiaries.” The SFC’s Executive Director of Enforcement, Christopher Wilson: “Under coordinated investigation, the SFC and the Exchange share information and intelligence in a timely manner so as to better allocate investigative resources to achieve our regulatory objectives. This case demonstrated the success of this initiative, and we look forward to achieving quicker and more effective regulatory outcomes through coordinated investigations.” HKEX Head of Enforcement, Jon Witts: “The Exchange and the SFC have been working closely together to combat IPO-related misconduct (Note 4). Our collaboration and sharing of information creates an effective combination of the different powers of the two regulators. We thank the SFC for their assistance, and look forward to further collaboration in our mission to maintain market quality and investor confidence.” Hong Kong Exchanges and Clearing Limited (HKEX) Securities and Futures Commission (SFC)

ASIC's intended review of private market transactions risks having negative impacts and alter important investment decisions. https://lnkd.in/gQJZ_T7e #asic #listedsecurities #primarymarkets #privateequity #regulation #venturecapital

CSRC Responds to "On-Site Scrutiny" Rumors: It Is a Routine Inspection. The China Securities Regulatory Commission (CSRC) refuted recent market rumors suggesting that local securities regulatory bureaus launched surprise on-site scrutiny over mutual fund companies in Beijing and Shanghai, as reported by China Fund News and other local media outlets. Anonymous sources cited in local newspapers confirmed that while regulators had indeed conducted on-site scrutiny over several mutual fund companies, these actions were part of routine industry oversight with no element of surprise intended. The reports emphasized that such actions aligned with the regulatory tone set for China's securities and investment fund industry, which prioritize strict regulation, thorough scrutiny of daily activities, on-site inspections, and enforcement. Wu Qing, chairman of the CSRC, reiterated the commitment to strict regulation aimed at fostering a healthy and robust securities and investment fund industry during a press conference focusing on economic matters held during the Two Sessions. In line with this commitment, CSRC unveiled a series of four policy documents on March 15th. Among them, the document dedicated to securities and investment funds highlighted CSRC's intention to bolster routine scrutiny, on-site inspections, and enforcement to compel market participants to prioritize compliance as a value-adding activity. CSRC further stated that it would grant permission for business activities only after thoroughly understanding their pros and cons and having a clear regulatory roadmap in place.

Sophisticated market participants in Canada’s capital markets can breathe easier following a recent ruling from the Ontario Capital Markets Tribunal. In 𝘾𝙤𝙧𝙢𝙖𝙧𝙠 𝙎𝙚𝙘𝙪𝙧𝙞𝙩𝙞𝙚𝙨 (𝙍𝙚), the CMT rejected all allegations of wrongdoing brought by the Ontario Securities Commission against Cormark Securities Inc. and the other respondents under the Ontario Securities Act. 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀 (1) Confirmed that the extended definition of "distribution" under the OSA does not include using restricted shares as collateral to borrow freely trading shares for short selling. The CMT did not “consider it appropriate to extend the definition of distribution to include transactions involving different shares.” (2) Rejected the OSC's claims of wrongdoing. It is expected for market participants to use their knowledge and skills to pursue profits. (3) An investment dealer is not an underwriter or advisor of a public issuer without meaningful evidence of a client relationship—complex transactions do not blur the lines between sophisticated market participants and issuers. Read Fasken's latest Litigation and Dispute Resolution Bulletin written by Steve Saville, Brad Moore, Payton Holliss and Paul Blyschak to learn more: https://direc.to/m4Ku. 

Hong Kong SFC & HKEX take joint enforcement action against 2 ex-directors of Hong Kong Exchange GEM-listed company Global Uin Intelligence for misconduct by paying $750,000 for IPO consultancy services in 2020 but payment was rerouted to joint bank account of 2 the ex-directors.  The 2 directors are Singapore-based Aris Goh Leong Heng & Anita Chia Hee Mei who are founders & controlling shareholders of Global Uin Intelligence. Read - https://lnkd.in/g_NC-pRw follow Caproasia | Driving the future of Asia he Hong Kong Securities & Futures Commission (SFC) and Hong Kong Stock Exchange (HKEX) have taken joint enforcement action against 2 ex-directors of Hong Kong Exchange GEM-listed company Global Uin Intelligence for misconduct by paying $750,000 (S$1 million) for IPO consultancy services in 2020 but payment was rerouted to joint bank account of 2 the ex-directors.  The 2 directors are Singapore-based Aris Goh Leong Heng & Anita Chia Hee Mei who are founders & controlling shareholders of Global Uin Intelligence.  Actions: “The statements in respect of Mr Goh and Ms Chia (EDs) above are made in addition to a public censure against them. The Director Unsuitability Statement is a statement that, in the Exchange’s opinion, Mr Goh and Ms Chia are unsuitable to occupy a position as director or within senior management of the Company or any of its subsidiaries.” The SFC’s Executive Director of Enforcement, Christopher Wilson: “Under coordinated investigation, the SFC and the Exchange share information and intelligence in a timely manner so as to better allocate investigative resources to achieve our regulatory objectives. This case demonstrated the success of this initiative, and we look forward to achieving quicker and more effective regulatory outcomes through coordinated investigations.” HKEX Head of Enforcement, Jon Witts: “The Exchange and the SFC have been working closely together to combat IPO-related misconduct (Note 4). Our collaboration and sharing of information creates an effective combination of the different powers of the two regulators. We thank the SFC for their assistance, and look forward to further collaboration in our mission to maintain market quality and investor confidence.” Hong Kong Exchanges and Clearing Limited (HKEX) Securities and Futures Commission (SFC)

The head of the Financial Supervisory Service, Lee Bok-hyun, revealed at the 'Invest: K-Finance New York IR' event in New York that the decision on when to resume short selling and the scope of targets for resumption will be disclosed next month. Lee emphasized the need to address market concerns regarding the valuation of Korean stocks. The resumption date is expected to be unveiled in mid-June. Lee indicated that while there is a desire to resume short selling by June, the feasibility of stakeholders handling the necessary technical and institutional preparations will be taken into account. The plan will be communicated to the market within a specific timeframe. In preparation for the potential resumption of short selling, the Financial Supervisory Service engaged with global IBs based in Hong Kong to discuss the introduction of the 'K-Short Selling System'. Global IBs play a crucial role in executing short selling orders for hedge funds. Previously, according to the interim investigation results of the FSS Short Selling Special Investigation Team, among the top 14 global IBs, nine were found to have engaged in illegal short selling amounting to W211.2 billion ($156 million). This underscores the importance of implementing clear guidelines and regulations to prevent such practices in the future. Vice Chairman Ham Yong-il stressed the importance of strengthening internal controls and system improvements for the effective operation of the short selling system. He called for cooperation in conducting a thorough investigation into short selling practices and urged institutions to enhance their understanding of Korean regulations. Global IBs requested clearer guidelines and regulations from the Financial Supervisory Service to address uncertainties related to short selling. The FSS also met with the Chairperson of the Securities and Futures Commission in Hong Kong to discuss ways to enhance collaboration on short selling regulations and investigations. Source: Biz Watch #FinancialRegulation #ShortSelling #KoreanStockMarket #GlobalIBs #MarketRegulation #FinancialNews

ASIC’s proposed review of private market transactions could dampen investor sentiment, leading to reduced trust and a slowdown in deal activity within the sector. PrimaryMarkets’ executive chairman, Jamie Green, noted that private markets “by their very nature thrive on confidentiality and strategic control over transactions”, and an increased scrutiny of the sector may lead to “more conservative investment behaviour and a change in investor sentiment”. Read the whole article in InvestorDaily here: https://bit.ly/4eCbpPG

Hong Kong SFC issues restriction notice (prohibits dealing or processing assets) to Kingston Securities on a client account who is a Hong Kong-listed company Director suspected of misconduct & breaching director duties.  Read - https://lnkd.in/gEUZrQf8 follow Caproasia | Driving the future of Asia The Hong Kong Securities & Futures Commission (SFC) has issued a restriction notice (prohibits dealing or processing assets) to Kingston Securities on a client account who is a Hong Kong-listed company Director suspected of misconduct & breaching director duties.  Hong Kong SFC (6/9/24): “The Securities and Futures Commission (SFC) has issued a restriction notice to Kingston Securities Limited (Kingston), prohibiting it from dealing with or processing certain assets held in a client account that belongs to a listed corporation’s board member, who is suspected of committing misconduct and breaching his director’s duties.  The SFC is not investigating Kingston which has cooperated with the SFC’s investigation. The restriction notice does not affect Kingston or its other clients.  The restriction notice prohibits Kingston, without the SFC’s prior written consent, from disposing of or dealing with, assisting, counselling or procuring another person to dispose of or deal with certain assets in any way in the account up to the amount stated in the notice. Kingston is also required to notify the SFC if it receives any instructions regarding the prohibitions specified above.  The SFC considers that the issue of the restriction notice, which preserves the assets in the account, is necessary to ensure that there will be funds available to meet any potential order made by the Court in legal proceedings that may be brought by the SFC, and is desirable in the interest of the investing public or in the public interest."