The Securities and Futures Commission (SFC) has issued a restriction notice to China International Capital Corporation Hong Kong Securities Limited (CICC), prohibiting it from trading or processing certain assets held in a client account related to suspected insider trading.
The SFC notes that it is not investigating the CICC. The restriction notice does not affect the operations of CICC or its other customers.
The restriction notice prohibits CICC, without the prior written consent of the SFC, from disposing of or dealing in, or assisting, advising or procuring another person to dispose of or deal in, any assets in the account in any way up to a certain amount; including :
- (i) entering into transactions in respect of any securities;
- (ii) process any withdrawals or transfers of securities and/or cash at the direction of any authorized person of the account or by any person acting on their behalf;
- (iii) dispose of or deal with any securities and/or cash at the direction of any authorized person of the account or by any person acting on their behalf; and/or
- (iv) assisting another person to dispose of any relevant property or to deal with any relevant property in a specified manner.
The CICC is also required to notify the SFC immediately if it receives any of these instructions.
The regulatory investigation is ongoing.