Articles: Short-selling

Retail investor Lau Chi Ho convicted and fined HK$20k for illegal short selling
SFC, 27-Oct-2022
Retail investors convicted and fined HK$114k for illegal short-selling
SFC, 18-Aug-2022
SFC fines Optimas Capital Ltd HK$1.05m over short position reporting failuresStatement of Disciplinary Action
SFC, 15-Apr-2021
A coding bug meant they reported positions below 0.02% instead of above it. The threshold is ridiculously low, by the way.
SFC fines Brilliance Asset Management Ltd HK3.15m for short position reporting failuresStatement of Disciplinary Action
SFC, 22-Feb-2021
SFC fines Glory Sun Securities Ltd HK$1.2m, suspends current and former ROs
SFC, 15-Jul-2019
The firm is a partly-owned subsidiary of Glory Sun Financial (1282). The firm's controls were ineffective to prevent naked short-selling by an account executive, Hui Kwok Piu.
SFC suspends Hui Kwok Piu for 16 months for naked short selling
SFC, 15-Jul-2019
SFC fines Nine Masts Capital Ltd HK$1.2m over naked short sellingLogo
SFC, 18-Apr-2019
For accidentally shorting shares they had not yet received in a placing, for the second time. We see the company logo is a boat with 3 sets of sails, so they are short-sailing 6 masts too.
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.
Mr Hui Kwok Piu of China Goldjoy Securities convicted and fined for illegal short selling of Coslight (1043)
SFC, 26-Jul-2018
Broker acquitted again of illegal short selling
SFC, 25-Jul-2018
Mr Wong Hung was acquitted 4 years ago by a different magistrate, David Chum Yau Fong. The SFC appealed to the Court of First Instance, which ordered a retrial, stating that "no reasonable magistrate…would have reached the same conclusion". This time, Magistrate Li Chi Ho reached the same conclusion.
Court orders re-trial after allowing SFC’s appeal in illegal short selling caseJudgment (Chinese)
SFC, 27-Dec-2017
Retail investors convicted of illegal short selling
SFC, 27-Apr-2017
Presentation on HK securities market reform
These are the slides from a presentation by David Webb to accountants hosted by legislator Kenneth Leung this evening. (16-May-2016)
SFC proposal sells HK short
We need your help! Support our submission to the SFC against draconian short-selling restrictions and reporting requirements in HK. Under 1 Country 2 Systems, there is no reason to follow China's demonisation of short-selling or to affirm that bias with a dragnet approach to reporting of short positions at 0.02% when long buyers only have to disclose at 5%. (28-Dec-2015)
SFC fines 3 JP Morgan entities total HK$30m
SFC, 15-Dec-2015
Note: there was apparently no actual failure to settle the 41,000 uncovered short sales (for which the firm held long positions in other legal entities), nor did any client get a worse price on their agency orders than they could have obtained in the market.
SFC bans Chan Chi Yuen, ex-Phillip Securities, for 18 months
SFC, 13-Oct-2015
Market participants urged to comply with short position reporting
SFC, 9-Oct-2014
Broker acquitted of illegal short selling
SFC, 4-Jun-2014
Short positions now on Webb-site Who's Who
Behold, a new feature, as we show weekly aggregate short positions as a percentage of outstanding shares. (29-Apr-2014)
Mr Chan Chi Yuen, ex-Phillip Securities, convicted of naked short selling
SFC, 31-Oct-2013
Corporate investor convicted of illegal short selling
SFC, 5-Sep-2013
The company is 100%-owned by Hao Wen Holdings Ltd (8019), although the SFC chooses not to say so.
Retail investor Mr Law Kwong Shing convicted of illegal short selling
SFC, 25-Jul-2013
SFC suspends Mr Ng Kwok Wing for 6 weeks after naked short-selling conviction
SFC, 4-Mar-2013
Broker Ng Kwok Wing convicted of illegal short selling
SFC, 25-Oct-2012
SFC publishes aggregated short positions
SFC, 7-Sep-2012
The first publication shows total short positions at 31-Aug of HK$172.1bn. The Webb-site database shows total Main Board capitalisation tonight at HK$18,994bn, so this is 0.9% of market cap. As about half of that is free float, the short position is about 1.8% of the free float. Short positions must be disclosed to the SFC if they exceed very low thresholds of 0.02% of issued shares or HK$30m (whichever is lower).
Short selling regulation made more robust via reporting implementation
SFC, 18-Jun-2012
Retail investors convicted of illegal short selling
SFC, 31-May-2012
The short sales were on a Friday. On the evening of the next working day (a Monday) the results of a rights issue by Bao Yuan were announced, and certificates were dispatched the next day.
7 investors convicted for naked short-selling Imagi (0585) excess rights
SFC, 26-Apr-2012
Mr Woo Sai Cheung suspended for 18 months for illegal short selling with secret accounts
SFC, 28-Oct-2011
Short selling activities in Hong Kong
SFC, 7-Oct-2011
Broker Mr Woo Sai Cheung convicted of illegal short selling
SFC, 11-Aug-2011
SFC fines Ko’s Brother Securities HK$250k
SFC, 27-Aug-2010
SFC suspends Mak Chi Leung for 6 weeks for naked short selling
SFC, 17-Mar-2010
Proposed law sells HK short
If the Government consulted the public on a speed limit of 50km/h, then set it at 4km/h, wouldn't you wonder why? That's what the SFC has done after a consultation which from the outset was a solution in search of a non-existent problem. We call on the SFC to withdraw or amend its proposed filing requirements for 0.02% short positions and to focus with Government on filling the gap in the existing law by requiring public disclosure of short positions, including derivatives, at the same level as long positions, currently 5%. What do you think? Take our poll! (7-Mar-2010)
Research paper: how short-selling (postiively) affects liquidity in HK
SFC, 17-Apr-2009
"trading volume rose as short selling increased. Short selling improves market efficiency and increases turnover, be it directly or indirectly. As short selling helps price discovery, it encourages trading in the overall market...Short-selling activity helped narrow bid-ask spreads."
Research paper on short-selling in HK
SFC, 23-Oct-2008
SFC warns of action against abusive short selling
SFC, 30-Sep-2008
Comment: the SFC fails to define "abusive" short selling - nor does it suggest the possibility of "abusive" long buying.
SFC on short selling
SFC, 26-Sep-2008
SFC suspends Mr Daniel Ng Shiu Wah, of Wo Fung Securities Ltd, for 6 weeks, fines him HK$383,300 for short selling in his mum's account
SFC, 21-Jul-2008
SFC prosecutes Mr Wilson Lam Chun for naked short selling
SFC, 27-Mar-2008
SFC fines Mr Chia Wei Chen, ex-Goldman Sachs, HK$50k, for failing to tag short sales
SFC, 26-Feb-2008
SFC prosecutes Mr John Lam Ho Kwan for naked short selling
SFC, 4-Oct-2007
SFC prosecutes Mr Yip Po Keung, ex-Okachi Investments (HK) Co Ltd, for naked short selling
SFC, 12-Jul-2007
SFC prosecutes Mr Li Kwok Wah for naked short selling
SFC, 1-Mar-2007
SFC CEO on the uptick rule
SFC, 1-Feb-2007
"the current uptick rule for short-selling may inhibit timely execution of transactions and affect the price-formation process in the stock market...The SFC is now working with the Exchange to consider putting in place a mechanism that would allow for the suspension of the uptick rule."
SFC prosecutes Mr Ma Yuk Fat & wife Ms Yuen Wai Chun for naked short selling
SFC, 7-Sep-2006
SFC prosecutes Michael Ko Hay Tat for naked short selling MAE (0851)
SFC, 29-Jun-2006
SFC fines Carmela Lau Yin Mei for short selling and other misconduct
SFC, 5-Oct-2005
SFC fines Mr Yu Hing Fai of Ewarton Securities Ltd HK$40k for short selling
SFC, 7-Sep-2005
SFC fines Mr Ng Yan Ngai of Ewarton Securities Ltd HK$40k for supervision failures
SFC, 7-Sep-2005
SFC fines Mr Chan Yu Man of Ewarton Securities Ltd HK$30k for short selling
SFC, 7-Sep-2005
SFC reprimands Vivien Webb Wong for short selling and other failings
SFC, 3-Aug-2005
SFC fines Mr Ng Mau Chung HK$14k for poor standards and unintentional short selling of MAE (0851)
SFC, 16-Mar-2005
SFC prosecutes Mr Fung Wing Kwong for naked short selling
SFC, 10-Mar-2005
SFC prosecutes Mr Suen Chi Keung of Master Trademore Securities Ltd for naked short Selling
SFC, 15-Sep-2004
SFC prosecutes Ms Xu Li for not attending SFC investigation interviews
SFC, 8-Sep-2004
SFC prosecutes Mr Wong Chi Wai for naked short selling MAE (0851)
SFC, 25-Aug-2004
SFC prosecutes Rondy Sang Yee Pan for naked short-selling of Ngai Lik (0332)
SFC, 25-Jul-2003
SFC prosecutes Chan Shing Chun for naked short selling and market manipulation and Johnnie Choy Tin Woo for naked short selling
SFC, 25-Mar-2003
SFC reprimands Chung Nam Securities Limited for allowing front-running and naked short-selling
SFC, 20-Apr-2000
SFC prosecutes Mr Sin Chun Kuen & Mr Chan Tat Fung of Quest Stockbrokers (HK) Ltd for naked short-selling
SFC, 4-Jan-2000
SFC reprimands Mr Tsui Moon Kwong of Core Pacific-Yamaichi for front-running and naked short-selling in girlfriend's account
SFC, 21-Oct-1999
SFC prosecutes Mr Chan Man Yim & Mr Lam Wing Tong for naked short-selling
SFC, 29-Sep-1999
SFC prosecutes Ms Wong Yin Ling for naked short selling
SFC, 24-Aug-1999
SFC reprimands Ms Chan Yuen Yee trading as Tai Shing Stock Investment Co, SEHK censures and fines her HK$40k
SFC & SEHK, 15-Jun-1999
SFC prosecutes Ms Fung Yee Wan for naked short selling
SFC, 3-Jun-1999
SFC prosecutes Ms Tam Suk Ling for naked short selling
SFC, 15-Apr-1999
SFC prosecutes Ng Kwok Leung, Chu Wing Kin, Chan Nga Sze and Tam Wah Shing for naked short selling
SFC, 25-Mar-1999
SFC prosecutes Mr Deng Haitao for naked short selling
SFC, 9-Mar-1999
SFC prosecutes Mr Sung Wah Ting for naked short-selling
SFC, 2-Dec-1998
SFC prosecutes Mr Tsang Kwing Yin, Mr Lee Kang & Miss Lam Mei Lin for naked short selling
SFC, 15-Oct-1998
SFC prosecutes Christine Nigam Kim Tee & Prime Assets Ltd for naked short-selling
SFC, 29-Sep-1998
SFC prosecutes Mr Man Tak Hong for naked short selling
SFC, 17-Sep-1998
SFC suspends Mr Tang Siu Lap for 2 years for short-selling and front-running
SFC, 27-Aug-1998
Action against CAF Securities Ltd & directors
SFC & SEHK, 24-Jun-1998
SFC prosecutes Mr Kwong Wai Tong & Mr Wong Ka Chun for naked short selling
SFC, 4-Jun-1998
SFC prosecutes Mr Chan Kwai Ming for naked short-selling
SFC, 23-Apr-1998
SFC prosecutes Lau Chi Ching for naked short-selling
SFC, 26-Mar-1998
SFC reprimands Mr Mak Wing Tak and Ms Peggy Kuo Wai Lan for short-selling
SFC, 12-Mar-1998
SFC prosecutes Mr Seto Kim Pong & Miss Fung Pik Wah for short-selling
SFC, 5-Mar-1998
Appeals Tribunal upholds decision to suspend Mr Mak Chung Kong for 3 years for front-running & short-selling
SFC, 5-Jan-1998
SFC suspends Ms Mimi Tsang Lai Wah for 3 months for front-running & short-selling
SFC, 20-Nov-1997
SFC prosecutes Fu Wing Biu for naked short-selling
SFC, 6-Nov-1997
SFC prosecutes short-selling and unregistered dealing at CAF Securities
SFC, 6-Nov-1997
SFC prosecutes Ms Mimi Tsang Lai Wah of Goldenway Securities for naked short-selling
SFC, 11-Sep-1997
SFC suspends Mr Chu King Kau for 2 years for front-running and short-selling
SFC, 4-Sep-1997
SFC reprimands Ho Suk Jan of Victory Enterprises Co and prosecutes Wong Hing Wah, Law Woon Chun and Lam May Chi for short selling
SFC, 14-Aug-1997
SFC prosecutes Chan Kam Por and Ng King Ming for short selling
SFC, 17-Jul-1997
SFC prosecutes Mr Lee Yuen Sang for short-selling and suspends him
SFC, 26-Jun-1997
SFC prosecutes and reprimands Angela Wong Him Chi for short selling
SFC, 8-May-1997
SFC prosecutes and reprimands Lam Kin Chiu and Barry Wang Hing Ting for short selling
SFC, 13-Mar-1997
SFC prosecutes Wong Siu Chin, Lai Kam Hung, Poon Chun Keung and Wai Yuk Chun for short selling
SFC, 6-Mar-1997
SFC prosecutes 7 naked short-sellers
SFC, 27-Feb-1997
SFC prosecutes Mr Lam Chak Chuen & Ms Fan Yuen Han for short selling
SFC, 20-Feb-1997
SFC reprimands Gordon Mui Kwong Yin
SFC, 20-Feb-1997
Consultation on short-selling proposals
HKEX, 21-Feb-1992

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