The Hong Kong Securities and Futures Commission has commenced criminal proceedings at the Eastern Magistrates’ Courts against Chan Hoi Shing and Li Po Ching for allegedly employing a fraudulent scheme involving illegal short selling in the shares of 28 Hong Kong-listed companies, in contravention of section 300 of the Securities and Futures Ordinance. The SFC alleges that between 27 May 2020 and 29 December 2020 the defendants falsely represented that Chan held sufficient shares of the companies to support sell orders placed through Chan’s securities account at Black Marble Securities Limited, enabling illegal short selling and generating around HKD 11 million in profit. No plea was taken, and both defendants were granted bail subject to conditions including a travel ban, surrender of travel documents, regular police reporting and cash bail of HKD 280,000 each. The case was adjourned to 6 February 2026, when the prosecution will apply to transfer the proceedings to the District Court.
Hong Kong Securities & Futures Commission 2025-11-06
Hong Kong Securities and Futures Commission commences prosecution over alleged illegal short selling scheme across 28 listed companies
The Hong Kong Securities and Futures Commission has initiated criminal proceedings against Chan Hoi Shing and Li Po Ching for allegedly orchestrating a fraudulent scheme involving illegal short selling of shares in 28 Hong Kong-listed companies, violating section 300 of the Securities and Futures Ordinance. The defendants are accused of falsely representing shareholdings to facilitate illegal short selling, generating approximately HKD 11 million in profit. Both were granted bail with conditions, and the case is adjourned to 6 February 2026.