The Hong Kong Securities and Futures Commission (SFC) has obtained an arrest warrant for Mr Liu Shaolin to answer four charges of false trading in the shares of Pak Wing Group Holdings Limited (now China Hongbao Holdings Limited). The Eastern Magistrates’ Court issued the warrant following the SFC’s application, while the SFC has also brought civil proceedings under section 213 of the Securities and Futures Ordinance seeking, among other relief, an order to restore affected counterparties to their pre-transaction positions. The alleged misconduct relates to “marking-the-close” activity in May and June 2018, with the SFC alleging Liu placed orders near the market close at prices above prevailing levels to increase the closing price and later sold some shares for an illicit profit of around HKD 2.9 million. In the civil case, the Court of First Instance granted an interim injunction on 13 December 2024 freezing Liu’s Hong Kong assets up to HKD 3,158,400, which was discharged on 19 February 2025 after he paid HKD 3,158,400 into court as security pending final determination; restriction notices issued in September 2018 to freeze the profits were uplifted on 17 April 2025.
Hong Kong Securities & Futures Commission 2025-04-25
Hong Kong Securities and Futures Commission obtains arrest warrant over alleged Pak Wing share manipulation and secures HKD 3.158 million court security
The Hong Kong Securities and Futures Commission (SFC) has obtained an arrest warrant for Mr. Liu Shaolin on charges of false trading in Pak Wing Group Holdings Limited shares. The SFC alleges Liu engaged in "marking-the-close" activities in 2018, profiting illicitly by HKD 2.9 million. Civil proceedings seek to restore affected counterparties, with an interim injunction on Liu's assets discharged after he paid HKD 3,158,400 into court.