SFC Prosecutes China Northern Enterprises Investment Fund Limited and {X} for Contravening Part XV of the Securities and Futures Ordinance

The SFC has successfully prosecuted China Northern Enterprises Investment Fund Limited and its director {X} under Part XV of the Securities and Futures Ordinance. China Northern was a substantial shareholder of Ningbo Yidong Electronic Company Limited at the material time.

China Northern pleaded guilty to four summonses relating to its failure to notify within the prescribed period the Stock Exchange of Hong Kong and Ningbo regarding its trading in Ningbo shares on 14 November 2003 and 25 November 2003 respectively, which caused China Northern ceased to have or to have a notifiable interest in Ningbo.

In addition, {X}, a director of China Northern, pleaded guilty to four summonses relating to his failure to ensure that China Northern made the above-mentioned disclosures.

Mr Ian Candy, a Magistrate at Eastern Magistracy, fined China Northern and {X} a total of $12,000 and $8,000 respectively and ordered {X} to pay investigation costs of $17,000 to the SFC.

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