Hong Kong’s Securities and Futures Commission (SFC) has obtained a criminal conviction against Mr Ng Ka Hei for false trading, with the Eastern Magistrates’ Courts convicting him of seven counts relating to shares of six Hong Kong-listed companies. The SFC alleged that between 20 September 2022 and 24 October 2023, Ng used a “scaffolding” strategy by repeatedly placing and cancelling orders at progressively higher prices, and also conducted wash trades through multiple securities accounts where he acted as both buyer and seller. The conduct was found to have impacted share prices and misled market participants into believing there was a genuine market at artificial price levels, enabling Ng to dispose of shares for a net profit of HKD 117,715; he pleaded guilty to all counts. Sentencing was adjourned to 12 February 2026 and Ng was granted cash bail of HKD 10,000. The SFC noted the offence is contrary to section 295 of the Securities and Futures Ordinance and that the six companies were Main Board-listed on The Stock Exchange of Hong Kong Limited.
Hong Kong Securities & Futures Commission 2026-01-22
Hong Kong Securities and Futures Commission secures false trading conviction against retail trader over scaffolding and wash trades
The Hong Kong Securities and Futures Commission secured a criminal conviction against Mr. Ng Ka Hei for false trading involving shares of six Hong Kong-listed companies, with the Eastern Magistrates’ Courts finding him guilty of seven counts. Ng used a "scaffolding" strategy and wash trades to manipulate share prices, resulting in a net profit of HKD 117,715; sentencing is set for 12 February 2026.