Hong Kong SFC Starts Market Misconduct Tribunal Proceedings Against ex-Chairman of Investment Group Ding Yi Feng Holding Sui Guangyi, 2 Entities & 28 Individuals for Suspected Market Manipulation to Create False or Misleading Appearance of Active Trading on Smartac International Shares in 2018 & 2019, Trading of Ding Yi Feng Holding Suspended in 2019 & Resumed in 2020 with Current Market Value of $26 Million, Sui Guangyi Owns 22.26% of Ding Yi Feng
15th November 2024 | Hong Kong
The Hong Kong Securities & Futures Commission (SFC) has started Market Misconduct Tribunal (MMT) proceedings against the ex-Chairman of investment group Ding Yi Feng Holding Sui Guangyi, 2 entities & 28 individuals for suspected market manipulation to create false or misleading appearance of active trading on Smartac International shares in 2018 & 2019. The trading of Ding Yi Feng Holding was suspended in 2019 & resumed in 2020. Ding Yi Feng Holding current market value is around $26 million. Sui Guangyi owns around 22.26% of Ding Yi Feng. Hong Kong SFC (12/11/24): “The Securities and Futures Commission (SFC) has commenced 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 (Ding Yi Feng), two corporate entities and 28 other suspects for alleged manipulation of the shares of Smartac International Holdings Limited (Smartac) (Notes 1 and 2). The SFC alleges that between 31 October 2018 and 11 March 2019, Sui and the other 30 suspects conducted manipulative trading in Smartac shares to push up the price and turnover, which resulted in creating a false or misleading appearance of active trading in and the price of Smartac shares. Matched trades between the suspects’ securities accounts constituted a notable portion of the trading volume of Smartac shares during the material period (Note 3). The substantial increase in Smartac’s share price also significantly contributed to an investment gain by Ding Yi Feng as Smartac shares accounted for 21.68% of its gross assets as of 31 December 2018. The SFC had issued restriction notices to freeze securities accounts linked to the suspected market manipulation of Smartac shares. The restriction notices remain in force (Note 4). The SFC appreciates the assistance provided by the China Securities Regulatory Commission during the investigation.” In 2024 October, Hong Kong Securities and Futures Commission (SFC) obtained an interim court order to freeze $817 million assets of 11 suspected manipulators of Ding Yi Feng shares to create false or misleading appearance of active trading in 2018.
“ Hong Kong SFC Starts Market Misconduct Tribunal Proceedings Against ex-Chairman of Investment Group Ding Yi Feng Holding Sui Guangyi, 2 Entities & 28 Individuals for Suspected Market Manipulation to Create False or Misleading Appearance of Active Trading on Smartac International Shares in 2018 & 2019, Trading of Ding Yi Feng Holding Suspended in 2019 & Resumed in 2020 with Current Market Value of $26 Million, Sui Guangyi Owns 22.26% of Ding Yi Feng “
Notes:
- The listing of the shares of Smartac (formerly known as Smartac Group China Holdings Limited) was cancelled on 20 February 2023 as it failed to fulfil the resumption guidance issued by The Stock Exchange of Hong Kong Limited (SEHK).
- Ding Yi Feng (formerly known as China Ding Yi Feng Holdings Limited) is listed on the Main Board of SEHK. Separate proceedings have been commenced in the Court of First Instance and in the MMT in relation to suspected market manipulation in Ding Yi Feng shares. Please see the SFC’s press releases dated 26 February 2024 and 27 March 2024.
- Matched trades refer to trades conducted at or nearly at the same time, and with similar or identical quantity and prices of shares.
- Please see the SFC’s press release dated 25 June 2019.
Hong Kong SFC Obtains Interim Court Order to Freeze $817 Million Assets of 11 Suspected Manipulators of Ding Yi Feng Shares to Create False or Misleading Appearance of Active Trading in 2018
27th October 2024 – The Hong Kong Securities and Futures Commission (SFC) has obtained an interim court order to freeze $817 million assets of 11 suspected manipulators of Ding Yi Feng shares to create false or misleading appearance of active trading in 2018. Hong Kong SFC (25/10/24): “The Court of First Instance has granted an interim injunction order against 11 suspected manipulators of shares of Ding Yi Feng Holdings Group International Limited (Ding Yi Feng) in proceedings brought by the Securities and Futures Commission (SFC) under section 213 of the Securities and Futures Ordinance (SFO). Ding Yi Feng, formerly known as China Ding Yi Feng Holdings Limited, is listed on the Main Board of the Stock Exchange of Hong Kong Limited. Pursuant to the Court order, the 11 suspected manipulators, who allegedly manipulated Ding Yi Feng shares between 1 March and 14 September 2018, are prohibited from (i) removing any of their assets which are within Hong Kong, or (ii) in any way disposing of or dealing with or diminishing the value of any of their assets which are within Hong Kong, up to the value of $6,353,386,915. The interim injunction order ensures that there are sufficient assets to meet the restoration orders sought by the SFC, if the Court finds the suspected manipulators in contravention of the relevant provisions of the SFO. The interim injunction order remains in effect until further order of the Court.” In 2024 March, the Hong Kong Securities and Futures Commission (SFC) started Market Misconduct Tribunal (MMT) proceedings against the ex-Chairman of investment group Ding Yi Feng Holding (Sui Guangyi) & 20 individuals of suspected market manipulation to create false or misleading appearance of active trading in 2018. The trading of Ding Yi Feng Holding was suspended in 2019 & resumed in 2020. Ding Yi Feng Holding current market value is around $152 million (28/3/24). Sui Guangyi owns around 22.26% of Ding Yi Feng. Hong Kong SFC: “The Securities and Futures Commission (SFC) has commenced 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 (Ding Yi Feng), and 20 other individuals (Notes 1 and 2). The SFC alleges that between 1 March 2018 and 14 September 2018, Sui and the other individuals conducted manipulative trading and a significant number of matched trades in Ding Yi Feng shares to, among other things, create a false or misleading appearance of active trading in the shares and the price of the shares (Note 3). By doing so, the overall trading volume was significantly increased, thereby creating a false impression of larger market liquidity of Ding Yi Feng shares and misleading other market participants in their decision making. Trading in Ding Yi Feng shares were suspended on 8 March 2019 at the direction of the SFC and resumed on 23 January 2020 when the SFC announced that it was commencing proceedings (Note 4). The SFC also had issued restriction notices to freeze client accounts linked to the suspected market manipulation of Ding Yi Feng shares. The restriction notices remain in force (Note 5). The SFC appreciates the support and assistance provided by the China Securities Regulatory Commission during the investigation.”
Hong Kong SFC Starts Market Misconduct Tribunal Proceedings Against Ex-Chairman of Investment Group Ding Yi Feng Holding Sui Guangyi & 20 Individuals for Suspected Market Manipulation to Create False or Misleading Appearance of Active trading in 2018, Trading of Ding Yi Feng Holding Suspended in 2019 & Resumed in 2020 with Current Market Value of $152 Million, Sui Guangyi Owns 22.26% of Ding Yi Feng
29th March 2024 – The Hong Kong Securities and Futures Commission (SFC) has started Market Misconduct Tribunal (MMT) proceedings against the ex-Chairman of investment group Ding Yi Feng Holding (Sui Guangyi) & 20 individuals of suspected market manipulation to create false or misleading appearance of active trading in 2018. The trading of Ding Yi Feng Holding was suspended in 2019 & resumed in 2020. Ding Yi Feng Holding current market value is around $152 million (28/3/24). Sui Guangyi owns around 22.26% of Ding Yi Feng. Hong Kong SFC: “The Securities and Futures Commission (SFC) has commenced 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 (Ding Yi Feng), and 20 other individuals (Notes 1 and 2). The SFC alleges that between 1 March 2018 and 14 September 2018, Sui and the other individuals conducted manipulative trading and a significant number of matched trades in Ding Yi Feng shares to, among other things, create a false or misleading appearance of active trading in the shares and the price of the shares (Note 3). By doing so, the overall trading volume was significantly increased, thereby creating a false impression of larger market liquidity of Ding Yi Feng shares and misleading other market participants in their decision making. Trading in Ding Yi Feng shares were suspended on 8 March 2019 at the direction of the SFC and resumed on 23 January 2020 when the SFC announced that it was commencing proceedings (Note 4). The SFC also had issued restriction notices to freeze client accounts linked to the suspected market manipulation of Ding Yi Feng shares. The restriction notices remain in force (Note 5). The SFC appreciates the support and assistance provided by the China Securities Regulatory Commission during the investigation.”
Notes:
- Ding Yi Feng (formerly known as China Ding Yi Feng Holdings Limited) is listed on the Main Board of The Stock Exchange of Hong Kong Limited.
- On 26 February 2024, the SFC commenced proceedings in the Court of First Instance against the same group of individuals for alleged manipulation of Ding Yi Feng shares. Please see the SFC’s press release dated 26 February 2024.
- Matched trades refer to trades conducted at or nearly at the same time, and with similar or identical quantity and prices of shares.
- Please see the SFC’s press release dated 22 January 2020 for the lifting of the suspension of the trading in Ding Yi Feng shares.
- Please see the SFC’s press releases dated 20 March 2019 and 25 June 2019.
- A copy of the SFC’s Notice of the MMT proceedings is available on the MMT’s website.
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