Hong Kong's Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC) have conducted a joint operation against two companies listed on The Stock Exchange of Hong Kong Limited on suspicion that their shares were manipulated between December 2022 and August 2023.。

SFC and ICAC searched 14 premises suspected of being linked to market manipulation cases。In the joint operation, the ICAC also arrested a core member of a suspected criminal syndicate under the Prevention of Bribery Ordinance.。

The investigation found that an extremely well-organized group was suspected of plotting a plan to raise the share prices of the two listed companies, in violation of the relevant provisions of the Securities and Futures Ordinance.。The SFC suspects that the ultimate aim of the plan is to push up the market value of two listed companies to facilitate their selection as constituents of major market indices and to allow the group to sell shares of listed companies to index-tracking funds at high prices.。

to facilitate the operation of the scheme, the arrested core group members were suspected of offering bribes to two senior executives of one of the two listed companies for the purpose of disseminating false and misleading information about the company。

For the joint operation, the SFC has issued restriction notices to six brokerage firms prohibiting them from dealing with assets held in eight trading accounts suspected of manipulating the stock market of one of the two listed companies.。

The six brokerages are: Fuchang Securities Limited, Futu Securities International (Hong Kong) Limited, Greater China Securities Limited, Ligao Securities Limited, Huasheng Capital Limited and Zinvest Global Limited.。

The SFC did not investigate the six brokerages, all of which cooperated with the investigation and the restriction notice would not affect their operations or other customers.。

The regulator explains that it is desirable to issue a restriction notice in the interest of the investing public or in the public interest。

The Restriction Notice prohibits the Six Brokers from disposing of or dealing with any asset in the Trading Account in any way, or assisting, encouraging or procuring the disposal of an amount in the Trading Account in any way, without the prior written consent of the SFC, including: (i) dealing in securities; (ii) dealing with the withdrawal or transfer of any securities and / or cash at the direction of any authorized person in the Account or any person acting on its behalf;。

The Broker shall also notify the SFC if it receives any such instruction。