Hong Kong Securities and Futures Commission withdraws restriction notices on three brokers to enable return of misappropriated Hua Han funds

The Hong Kong Securities and Futures Commission (SFC) has withdrawn restriction notices that had prohibited three brokers from disposing of or dealing with proceeds or assets in client accounts linked to false or misleading information in Hua Han Health Industry Holdings Limited’s financial statements. The withdrawal is intended to facilitate the return of restricted assets to affected parties. The brokers are Changjiang Securities Brokerage (HK) Limited, Haitong International Securities Company Limited and Kingston Securities Limited. The notices were issued to preserve assets held by former Hua Han executives Zhang Yue and Deng Jie in accounts maintained by their investment vehicle, Bull’s-Eye Limited (BEL), after the SFC’s investigation uncovered misappropriation of proceeds from Hua Han fundraising activities and found that part of the misappropriated proceeds had been deposited into BEL’s accounts. The notices were lifted following the successful prosecution by the Police’s Commercial Crime Bureau, after an SFC referral, against Hua Han’s former financial controller and company secretary for money laundering of the misappropriated proceeds, and the brokers are not subjects of the SFC’s investigation. Following the withdrawal, BEL’s joint liquidators, Kroll Advisory (BVI) Limited and Kroll (HK) Limited, will take possession and control of the assets in BEL’s accounts pursuant to a High Court order recognising their appointment.