HONG KONG: Fine of HKD 35,000 Imposed on Former CEO for Illegal Short Selling

The Eastern Magistrates’ Court of Hong Kong has convicted Mr Sammy Shiu Kin Keung for illegal short selling in the shares of Share Economy Group Limited (formerly known as Vitop Bioenergy Holdings Limited) , Global Tech (Holdings) Limited and China Ocean Industry Group Limited (formerly known as China Ocean Shipbuilding Industry Group Limited) on 14 occasions.

Shiu was fined a total of HKD 35,000 and was ordered to pay the Securities and Futures Commission’s (SFC) investigation costs.

In April and May 2014, Shiu placed orders to sell shares of the three companies through his personal trading account at China Rise Securities Asset Management Company Limited when he did not have sufficient quantities of the shares to sell. Shiu later bought back shares to cover some of his short sales and in doing so, made a profit of approximately HKD 22,500.

Section 170(1) of the Securities and Futures Ordinance (SFO) prohibits the sale of securities when the person does not have a presently exercisable and unconditional right to sell them.

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