The SFC Successfully Prosecutes Chan Kiu Chi for Market Manipulation

The Securities and Futures Commission (SFC) announced today that it had successfully prosecuted Chan Kiu Chi (Chan) for intentionally creating a false market in the share price of Man Sang International Limited (Man Sang). Chan pleaded guilty, before Ms Polly Lo at Western Magistracy, to a summons for creating a false market in the shares of Man Sang on 31 January and 1 February 2000. She was fined $20,000 and ordered to pay costs of $28,600 to the SFC.

The SFC investigation identified that immediately after the market opened on 31 January and 1 February 2000 respectively Chan had caused to be placed on the Stock Exchange of Hong Kong Limited consecutive single board lot orders to sell Man Sang shares with the intention of depressing the share price of Man Sang. The aggressive selling strategy had effectively pushed down the then market price of Man Sang shares by 20% and 48% on each of the abovesaid two days. The acts of Chan contravened section 135(1)(b) of the Securities Ordinance.