The Hong Kong Securities and Futures Commission has obtained a Court of First Instance order disqualifying Mr Poon Tsz Hang, the former financial controller and company secretary of Qunxing Paper Holdings Company Limited, for two years over failures linked to the company’s false and misleading disclosures. The order bars him from acting as a director, liquidator, receiver or manager, or from being involved in the management of any listed or unlisted corporation in Hong Kong without leave of the Court, and also requires him to pay the regulator’s legal costs. The case under section 214 of the Securities and Futures Ordinance followed findings that Qunxing materially overstated annual turnover and understated bank borrowings in its September 2007 initial public offering prospectus, which contained its 2006 financial statements, and in published financial statements from 2007 to 2011. While serving as Qunxing’s most senior finance officer, Poon failed to discharge his responsibilities for overseeing the company’s accounting, finance and internal controls in a way that would reasonably have been likely to uncover the irregularities. In his capacity as company secretary, he also failed to immediately inform the board or address reporting and compliance obligations relating to a subsidiary restructuring matter that implied a sudden deterioration in Qunxing’s financial position. The proceedings began in September 2019 and followed earlier court orders made in February 2018 against Qunxing and its former chairman and vice chairman requiring compensation for investors. Distribution of 92 million in compensation to around 27,000 eligible investors was completed in January 2023.
Hong Kong Securities & Futures Commission 2026-05-13
Hong Kong Securities and Futures Commission secures two year disqualification order against former Qunxing Paper financial controller over false and misleading disclosures
The Hong Kong Securities and Futures Commission obtained a Court of First Instance order disqualifying former Qunxing Paper Holdings financial controller and company secretary Poon Tsz Hang for two years over failures related to the company’s false and misleading disclosures, and requiring him to pay legal costs. The court found Qunxing materially overstated turnover and understated bank borrowings in its 2007 IPO prospectus and later financial statements, and that Poon failed in his responsibilities. The proceedings, commenced in September 2019 under section 214 of the Securities and Futures Ordinance, followed earlier 2018 court orders requiring compensation to investors.