The Eastern Magistrates' Court sentenced two former licensed brokers, Yip Chi Wing and Tsoi Chiu Kwan, to three months' imprisonment each after they were convicted of false trading in the shares of Forebase International Holdings Limited.

In sentencing, Magistrate Stanley Ho Chun-yiu stated that Yip Chi Wing and Tsoi Chiu Kwan, in their capacity as licensed brokers, played a significant role in the false trading of Forebase shares.

The offense occurred over a ten-month period in 2015 and 2016, creating a false or misleading appearance of active trading in Forebase shares. Considering the severity of their crimes and the need to protect the investing public, Mr. Ho deemed it appropriate to impose immediate custodial sentences in this case.

Mr. Wilson, Executive Director of Enforcement at the Securities and Futures Commission (SFC), stated, "The court's ruling sends a clear message to perpetrators of false trading that there are legal consequences for harming market integrity and undermining the trust and confidence of the investing public."

"The SFC will not tolerate licensed individuals abusing their positions to engage in market misconduct. We will not hesitate to take action against them, as their misconduct is serious. Licensed persons must always remember to uphold high standards of conduct and prioritize the best interests of their clients and market integrity," Mr. Wilson added.