The Hong Kong Securities and Futures Commission has commenced proceedings in the Court of First Instance against Wong Ho Yin, a former director of China Automotive Interior Decoration Holdings Limited and its subsidiary Giant Faith Holdings Limited, and So Lung Ying, the former general manager of Giant Faith, over alleged breaches of fiduciary duties. The case concerns purported fictitious transactions and wrongful payments, with the SFC seeking disqualification orders against both individuals and a compensation order against Wong for HKD 14.6 million, representing the loss and damage allegedly suffered by China Automotive. According to the SFC, between December 2019 and January 2020 Wong signed cheques for three payments totaling HKD 14.6 million that were recorded as payments to a Mainland company for food product purchases. The regulator alleges the funds were not used to settle genuine purchases or trade payables and instead amounted to misappropriation of corporate funds. At the time, Giant Faith was an indirectly wholly owned subsidiary of the Main Board-listed China Automotive and one of the group's two operating arms for food product trading. The proceedings were brought under section 214 of the Securities and Futures Ordinance, under which the court may disqualify a person from being a director or from being involved in the management of any corporation for up to 15 years, and may also order compensation.

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