SFC Successfully Prosecutes Wong Chi Wai for Short Selling

The SFC has successfully prosecuted Mr Wong Chi Wai for short selling MAE Holdings Limited shares on 20 June 2003.

Wong pleaded guilty today before Mr Eddie Yip, a Magistrate at Eastern Magistracy, to nine summonses in relation to his short selling of securities in contravention of Section 170 of the Securities and Futures Ordinance. Section 170(1) prohibits the sale of securities when the person does not have a presently exercisable and unconditional right to sell them.

An SFC investigation found that on 20 June 2003, Wong placed nine orders to sell a total of 16.7 million MAE shares through his own account and other accounts under his control while knowing that he and other account holders did not have enough shares to fulfil each of the sale orders.

Wong was fined a total of $54,000 and ordered to pay investigation costs of $10,560 to the SFC.

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