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SFC commences MMT proceedings against Ding Yi Feng former chairman over suspected market manipulation

Issue date: 2024-03-27 17:10:35

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.

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Notes:

1. Ding Yi Feng (formerly known as China Ding Yi Feng Holdings Limited) is listed on the Main Board of The Stock Exchange of Hong Kong Limited.
2. On 26 February 2024, the SFC commenced proceedings in the Court of First Instance against the same group of individuals for alleged manipulation of Ding Yi Feng shares. Please see the SFC’s press release dated 26 February 2024.
3. Matched trades refer to trades conducted at or nearly at the same time, and with similar or identical quantity and prices of shares.
4. Please see the SFC’s press release dated 22 January 2020 for the lifting of the suspension of the trading in Ding Yi Feng shares.
5. Please see the SFC’s press releases dated 20 March 2019 and 25 June 2019.
6. A copy of the SFC’s Notice of the MMT proceedings is available on the MMT’s website.

Source: SFC