The Hong Kong Securities and Futures Commission (SFC) has obtained a Court of First Instance order disqualifying Mr Zhang Yuqing, former vice-chairman and executive director of Zhongda International Holdings Limited, from acting as a director or being involved in the management of any listed or unlisted corporation in Hong Kong for six years without the court’s leave, and requiring him to pay the SFC’s costs. The order followed an SFC investigation into Zhang’s conduct at Zhongda, including failures to block or disclose to the board unauthorised fund transfers totalling RMB150 million and the disposal of a 20% stake in “Zhongwei Bus” to a private company owned or controlled by two former executive directors (the Xu Brothers) at a substantially undervalued price and without payment to Zhongda or its subsidiaries. The SFC also found that, despite knowledge of the unauthorised transfers and his management role in “Zhongwei Bus”, Zhang approved the publication of Zhongda’s 2011 interim results which did not reflect the transactions and contained false or misleading information; the court accepted that a six-year disqualification was appropriate given the seriousness of the breaches and sums involved, notwithstanding no allegation of personal benefit.
Hong Kong Securities & Futures Commission 2025-07-31
Hong Kong Securities and Futures Commission secures six-year director disqualification against former Zhongda International vice-chairman
The Hong Kong Securities and Futures Commission (SFC) secured a Court of First Instance order disqualifying Mr. Zhang Yuqing from directorial roles in any corporation in Hong Kong for six years. This follows an SFC investigation revealing Zhang's failure to disclose unauthorized fund transfers and undervalued asset disposals at Zhongda International Holdings Limited. Despite no personal gain, Zhang's actions led to misleading financial disclosures, warranting disqualification.