Hong Kong’s Securities and Exchange Commission (SFC) has initiated proceedings in the Market Misconduct Tribunal (MMT) against Mr Sui Guangyi, former chairman and non-executive director of Ding Yi Feng Holdings Group International Limited, and 20 other individuals.
The SFC alleges that between March 1, 2018 and September 14, 2018, Sui and the other persons conducted manipulative trades and a substantial number of matched trades in shares of Ding Yi Feng to, among other things, create a false or misleading appearance of active trading in the shares and the share price.
In this way, the total trading volume increased significantly, thereby creating a false impression of greater market liquidity for Ding Yi Feng’s shares and misleading other market participants in their decision making.
Trading in Ding Yi Feng’s shares was suspended on March 8, 2019 by order of the SFC and resumed on January 23, 2020 when the SFC announced it was commencing proceedings.
The regulator had also issued restriction notices to freeze customer accounts linked to suspected market manipulation of Ding Yi Feng’s shares. Restriction notices remain in effect.
The SFC appreciates the support and assistance provided by the Securities and Exchange Commission during the investigation.