SFC Prosecutes Fung Yee Wan for Short Selling

The SFC announced that on 1 June 1999 it had successfully prosecuted Ms Fung Yee Wan (Fung) for short selling securities on the Stock Exchange of Hong Kong Limited between 2 June 1998 and 12 August 1998.

Fung pleaded guilty before Ms Polly Lo at Western Magistracy to a total of 17 summonses in relation to her short selling of securities in contravention of Section 80 of the Securities Ordinance. Section 80 (1) of the Securities Ordinance prohibits the sale of securities when the seller does not have a presently exercisable and unconditional right to sell.

Fung was fined a total of $34,000 for the 17 summonses and was ordered to pay investigation costs of $12,457 to the SFC.