Hartmann, Michael John 夏正民
SFAT affirms SFC fine of Cardinalasia Consulting Ltd HK$1.5m, imposes heavier suspension on RO Edward Lee Shiu Lun, for failures in managing private funds
| SFAT decision
SFC, 30-Jan-2023
There's a much bigger story beyond this case, involving Anthony Yeung Chun Wai and allegedly, Mr Deng Jun Jie.
SFC, 30-Jan-2023
There's a much bigger story beyond this case, involving Anthony Yeung Chun Wai and allegedly, Mr Deng Jun Jie.
SFAT affirms SFC decision to suspend hedge fund manager Christopher James Aarons
| SFAT Determination
SFC, 29-Sep-2022
SFC, 29-Sep-2022
Christopher James Aarons v SFC
SFAT, 14-Mar-2022
Tribunal Chairman Michael Hartmann, who is locked out of HK in Australia due to the HK Government's flight ban, rules that rather than delay proceedings, he should conduct the hearing in April via video link, overruling objections from Mr Aarons.
SFAT, 14-Mar-2022
Tribunal Chairman Michael Hartmann, who is locked out of HK in Australia due to the HK Government's flight ban, rules that rather than delay proceedings, he should conduct the hearing in April via video link, overruling objections from Mr Aarons.
MMT sanctions Tianhe Chemicals (ex-1619) and its ED for false or misleading information in the listing prospectus
| MMT report
SFC, 25-Jan-2022
SFC, 25-Jan-2022
SFAT affirms SFC decision to fine Yi Shun Da Capital Ltd for sponsor due diligence failures
| SFAT Decision
SFC, 19-Oct-2021
Relating to the aborted IPO of Imperial Sierra Group Holdings Ltd, in the track record of which, circular payments were supected. The proposed fine was reduced from HK$14m to $4.5m by the SFC and to $3m by the SFAT after considering the firm's financial position. The take-away from this is perhaps don't leave more capital inside your firm than is required by regulations, and pay out profits regularly.
SFC, 19-Oct-2021
Relating to the aborted IPO of Imperial Sierra Group Holdings Ltd, in the track record of which, circular payments were supected. The proposed fine was reduced from HK$14m to $4.5m by the SFC and to $3m by the SFAT after considering the firm's financial position. The take-away from this is perhaps don't leave more capital inside your firm than is required by regulations, and pay out profits regularly.
SFAT allows review for Henry Cai Hongping
| SFAT ruling
SFC, 4-Jun-2021
The tribunal concludes that it was "as likely as not" that Mr Cai was appointed as the team Principal for the doomed IPO of China Metal Recycling, and contradictory reports from UBS suggest it could also have been Michael Ngai Ming Tak, who also denied it. The standard of proof, namely the balance of probabilities, was not met.
SFC, 4-Jun-2021
The tribunal concludes that it was "as likely as not" that Mr Cai was appointed as the team Principal for the doomed IPO of China Metal Recycling, and contradictory reports from UBS suggest it could also have been Michael Ngai Ming Tak, who also denied it. The standard of proof, namely the balance of probabilities, was not met.
MMT sanctions China Medical & HealthCare (0383) and its directors for late disclosure of inside information
| MMT report, 6-Aug-2021
SFC, 12-May-2021
SFC, 12-May-2021
Christopher James Aarons v SFC
SFAT, 13-Apr-2021
Mr Aarons' application for secret proceedings is denied. Open justice prevails. He is appealing the SFC's proposed 3-year ban following his fine in Korea for dealing on material non-public information, relating to a block sale in Hyundai Securities Co Ltd, for which a penalty of KRW337.6m (HK$2.6m) was imposed. Amazingly, in Korea, defendants are not publicly named even after they have been fined. The SFAT hearing is scheduled for 8, 11 and 14-Apr-2022.
SFAT, 13-Apr-2021
Mr Aarons' application for secret proceedings is denied. Open justice prevails. He is appealing the SFC's proposed 3-year ban following his fine in Korea for dealing on material non-public information, relating to a block sale in Hyundai Securities Co Ltd, for which a penalty of KRW337.6m (HK$2.6m) was imposed. Amazingly, in Korea, defendants are not publicly named even after they have been fined. The SFAT hearing is scheduled for 8, 11 and 14-Apr-2022.
MMT sanctions Charles Yiu Hoi Ying & Marian Wong Nam, ex-Asia Telemedia Ltd (0376)
| MMT report
SFC, 7-Apr-2021
For insider dealing in 2007. After the MMT wrongly cleared them in 2015, the SFC took the case all the way to the Court of Final Appeal and won.
SFC, 7-Apr-2021
For insider dealing in 2007. After the MMT wrongly cleared them in 2015, the SFC took the case all the way to the Court of Final Appeal and won.
MMT sanctions CMBC Capital (1141) and 6 ex-directors for late disclosure in 2014
| MMT report, 19-Feb-2021
SFC, 16-Oct-2020
SFC, 16-Oct-2020
CFA allows SFC's appeal against MMT decision on insider dealing in Asia Telemedia Ltd
SFC, 12-Oct-2018
By a 4:1 majority, the Court of Final Appeal overturns the Court of Appeal's ruling which upheld the MMT decision. That's a victory for common sense - the defence that the insiders were selling to take advantage of a bubble holds no water when, if the company's financial difficulties had been known, its stock price would have been lower. By that test, they were "using" the Inside Information.
SFC, 12-Oct-2018
By a 4:1 majority, the Court of Final Appeal overturns the Court of Appeal's ruling which upheld the MMT decision. That's a victory for common sense - the defence that the insiders were selling to take advantage of a bubble holds no water when, if the company's financial difficulties had been known, its stock price would have been lower. By that test, they were "using" the Inside Information.
MMT finds ex-CEO of SuperRobotics (8176) and 2 others culpable of market manipulation
Market Misconduct Tribunal, 7-Aug-2018
That was 3 name changes ago, in 2009. None of the 3 actively defended themselves, 1 sending a lawyer's letter from Taiwan and another claiming she was too depressed to instruct a lawyer, a claim which the MMT rejected. We wait to see what sanctions will be determined. The report covers the funds flow in detail, involving concerted trading between 2 groups of accounts which the MMT finds were funded and coordinated by Samantha Keung.
Market Misconduct Tribunal, 7-Aug-2018
That was 3 name changes ago, in 2009. None of the 3 actively defended themselves, 1 sending a lawyer's letter from Taiwan and another claiming she was too depressed to instruct a lawyer, a claim which the MMT rejected. We wait to see what sanctions will be determined. The report covers the funds flow in detail, involving concerted trading between 2 groups of accounts which the MMT finds were funded and coordinated by Samantha Keung.
MMT sanctions Greencool's ex-Chairman and senior execs for false or misleading disclosure
SFC, 26-Jun-2017
SFC, 26-Jun-2017
Cout of Appeal dismisses SFC's appeal against MMT decision
SFC, 28-Apr-2017
It's the SFC's 2nd loss in a month, following the CITIC case at the MMT. The MMT cases involved the same judge. The appeal centres on the meaning of "using" inside information, and whether withholding of the information was a "use" which had contributed to the artificially high price. In our view, that misses the point. It should have been enough to show, as the SFC did, that the respondents knew that the market price would likely be materially lower if the information in their possession had been disclosed. On a common sense analysis, that should constitute "using" the information when dealing. Let's hope the SFC takes this point of law to the CFA.
SFC, 28-Apr-2017
It's the SFC's 2nd loss in a month, following the CITIC case at the MMT. The MMT cases involved the same judge. The appeal centres on the meaning of "using" inside information, and whether withholding of the information was a "use" which had contributed to the artificially high price. In our view, that misses the point. It should have been enough to show, as the SFC did, that the respondents knew that the market price would likely be materially lower if the information in their possession had been disclosed. On a common sense analysis, that should constitute "using" the information when dealing. Let's hope the SFC takes this point of law to the CFA.
MMT doesn't find market misconduct in CITIC (0267)'s 2008 circular
SFC, 10-Apr-2017
The MMT says the SFC failed to show that the statement of "no material adverse change" (MAC) caused the price to remain stable, and it is irrelevant that if the huge FX loss had been disclosed, it would have crashed the price. The SFC in our view erred in focussing on the "financial position" (the balance sheet) and ignoring the "trading position" (the income statement). The MMT says there hadn't been a MAC in the financial position as the loss, while price-sensitive, was bearable. That's wrong in our view because it takes a creditor's view rather than a shareholder's view of what is materially adverse, and the Listing Rules were written primarily for equities. The MMT didn't examine whether there was a MAC in the trading position, because the SFC didn't ask them to. Time has moved on - it is now civil Market Misconduct to fail to disclose price-sensitive Inside Information, but in 2008 it was just a breach of the Listing Rules.
SFC, 10-Apr-2017
The MMT says the SFC failed to show that the statement of "no material adverse change" (MAC) caused the price to remain stable, and it is irrelevant that if the huge FX loss had been disclosed, it would have crashed the price. The SFC in our view erred in focussing on the "financial position" (the balance sheet) and ignoring the "trading position" (the income statement). The MMT says there hadn't been a MAC in the financial position as the loss, while price-sensitive, was bearable. That's wrong in our view because it takes a creditor's view rather than a shareholder's view of what is materially adverse, and the Listing Rules were written primarily for equities. The MMT didn't examine whether there was a MAC in the trading position, because the SFC didn't ask them to. Time has moved on - it is now civil Market Misconduct to fail to disclose price-sensitive Inside Information, but in 2008 it was just a breach of the Listing Rules.
SFAT's red flag on Moody's chills negative research
We look at what the SFAT's ruling and the SFC's action says about the future of Hong Kong as a place in which freedom of debate and negative criticism is becoming increasingly difficult. (8-Apr-2016)
We look at what the SFAT's ruling and the SFC's action says about the future of Hong Kong as a place in which freedom of debate and negative criticism is becoming increasingly difficult. (8-Apr-2016)
MMT clears 3 in Asia TeleMedia case
SFC, 26-Nov-2015
The firm is now Reorient Group Ltd (0376). The MMT makes no finding on Lu Ruifeng, who was hospitalised outside the jurisdiction. It finds that 2 of the defendants knew negative price-sensitive information but that this was not a factor when they sold their shares during the 2007 market bubble. Comment: if the same events were to happen today, then the board would have a statutory obligation to disclose the inside information.
SFC, 26-Nov-2015
The firm is now Reorient Group Ltd (0376). The MMT makes no finding on Lu Ruifeng, who was hospitalised outside the jurisdiction. It finds that 2 of the defendants knew negative price-sensitive information but that this was not a factor when they sold their shares during the 2007 market bubble. Comment: if the same events were to happen today, then the board would have a statutory obligation to disclose the inside information.
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