HUATAI FINANCIAL HOLDINGS (HONG KONG) LIMITED 華泰金融控股(香港)有限公司

SFC fines SFM HK Management Ltd HK$1.5m for accidentally short-selling bonus shares of Great Wall Motor (2333)
SFC, 6-Dec-2018
After Great Wall Motor (2333) went ex a 2:1 bonus issue, SFM accidentally sold its bonus shares before they were issued. This is another reminder that bonus issues in effect temporarily delist part of the company, in this case, 2/3, because only the pre-bonus shares are tradeable between the ex-date and the delivery date. In September, the SFC fined Huatai Financial Holdings Ltd HK$800k for doing the same thing on the same bonus issue.
SFC fines Huatai HK$800k for accidentally short-selling bonus shares of Great Wall Motor (2333)
SFC, 17-Sep-2018
Ironically, the SFC makes the same mistake as Huatai made when dealing. The SFC news says: "On 30 September 2015, when the bonus shares started trading on an ex-rights basis…". But the bonus shares didn't start trading until 14-Oct, that's the whole point. The existing shares began trading ex-bonus on 30-Sep. Let this be a reminder that when a company declares a bonus issue, it effectively delists a portion of its shares from the ex-date until the bonus shares are issued.

Sign up for our free newsletter

Recommend Webb-site to a friend

Copyright & disclaimer, Privacy policy

Back to top