The Hong Kong Securities & Futures Commission secured the conviction of film producer Wong Pak Ming in the Eastern Magistrates’ Court for insider dealing in shares of Pegasus Entertainment Holdings Limited. The criminal case centred on Wong’s misuse of inside information obtained while he was Pegasus chairman and controlling shareholder and his advice to his sister to buy the company’s shares before that information was made public. The Court heard that, during 2017 negotiations for Wong to sell his controlling stake in Pegasus, he became aware of price-sensitive non-public information, including the signing of a memorandum of understanding and the receipt of HKD 10 million in earnest money from a potential buyer. After Pegasus received the earnest money on 25 August 2017, Wong transferred a total of HKD 2 million to his sister, who began buying shares the same day. From 30 August 2017, he sent multiple WhatsApp messages advising her on when and at what price to buy. Between 25 August and 17 October 2017, she acquired more than nine million Pegasus shares, largely using the funds he had provided, at prices below the market level that followed the deal announcement on 25 October 2017. Based on the post-announcement share price, the Securities & Futures Commission estimated her realised and notional profits at more than HKD 1 million. The case was adjourned to 9 June 2026 for sentencing.

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