Articles: Short-selling
Retail trader Christine Yeung Tak Sum jailed for 18 months for securities fraud via illegal short selling
SFC, 20-Mar-2024
The stock involved, then Aurum Pacific (China) Group Ltd, is now named Wuxi Life (8148).
SFC, 20-Mar-2024
The stock involved, then Aurum Pacific (China) Group Ltd, is now named Wuxi Life (8148).
SFC secures first criminal conviction of securities fraud via illegal short selling
SFC, 27-Feb-2024
The stock involved, then Aurum Pacific (China) Group Ltd, is now named Wuxi Life (8148). The trial of Chrstine Yeung Tak Sum was due to start on 27-Feb but she changed her plea to guilty and is now in custody pending sentencing on 20-Mar-2024.
SFC, 27-Feb-2024
The stock involved, then Aurum Pacific (China) Group Ltd, is now named Wuxi Life (8148). The trial of Chrstine Yeung Tak Sum was due to start on 27-Feb but she changed her plea to guilty and is now in custody pending sentencing on 20-Mar-2024.
Court sets trial date for employing a fraudulent scheme in securities transactions in illegal short selling case
SFC, 7-Nov-2023
Christine Yeung Tak Sum will be tried in the Magistracy for alleged illegal short selling with intent to defraud "with other people unknown".
SFC, 7-Nov-2023
Christine Yeung Tak Sum will be tried in the Magistracy for alleged illegal short selling with intent to defraud "with other people unknown".
4 people charged following SFC and Police joint operation against securities fraud and illegal short selling
SFC, 23-Jun-2023
SFC, 23-Jun-2023
SFC and Police joint operation against a suspect of illegal short selling and fraudulent activities
SFC, 31-May-2023
SFC, 31-May-2023
SFC fines Optimas Capital Ltd HK$1.05m over short position reporting failures
| Statement of Disciplinary Action
SFC, 15-Apr-2021
A coding bug meant they reported positions below 0.02% instead of above it. The threshold is ridiculously low, by the way.
SFC, 15-Apr-2021
A coding bug meant they reported positions below 0.02% instead of above it. The threshold is ridiculously low, by the way.
SFC fines Brilliance Asset Management Ltd HK3.15m for short position reporting failures
| Statement of Disciplinary Action
SFC, 22-Feb-2021
SFC, 22-Feb-2021
SFC fines Glory Sun Securities Ltd HK$1.2m, suspends current and former ROs
SFC, 15-Jul-2019
The firm is a partly-owned subsidiary of Glory Sun Financial (1282). The firm's controls were ineffective to prevent naked short-selling by an account executive, Hui Kwok Piu.
SFC, 15-Jul-2019
The firm is a partly-owned subsidiary of Glory Sun Financial (1282). The firm's controls were ineffective to prevent naked short-selling by an account executive, Hui Kwok Piu.
SFC fines Nine Masts Capital Ltd HK$1.2m over naked short selling
| Logo
SFC, 18-Apr-2019
For accidentally shorting shares they had not yet received in a placing, for the second time. We see the company logo is a boat with 3 sets of sails, so they are short-sailing 6 masts too.
SFC, 18-Apr-2019
For accidentally shorting shares they had not yet received in a placing, for the second time. We see the company logo is a boat with 3 sets of sails, so they are short-sailing 6 masts too.
SFC fines Huatai HK$800k for accidentally short-selling bonus shares of Great Wall Motor (2333)
SFC, 17-Sep-2018
Ironically, the SFC makes the same mistake as Huatai made when dealing. The SFC news says: "On 30 September 2015, when the bonus shares started trading on an ex-rights basis…". But the bonus shares didn't start trading until 14-Oct, that's the whole point. The existing shares began trading ex-bonus on 30-Sep. Let this be a reminder that when a company declares a bonus issue, it effectively delists a portion of its shares from the ex-date until the bonus shares are issued.
SFC, 17-Sep-2018
Ironically, the SFC makes the same mistake as Huatai made when dealing. The SFC news says: "On 30 September 2015, when the bonus shares started trading on an ex-rights basis…". But the bonus shares didn't start trading until 14-Oct, that's the whole point. The existing shares began trading ex-bonus on 30-Sep. Let this be a reminder that when a company declares a bonus issue, it effectively delists a portion of its shares from the ex-date until the bonus shares are issued.
Mr Hui Kwok Piu of China Goldjoy Securities convicted and fined for illegal short selling of Coslight (1043)
SFC, 26-Jul-2018
SFC, 26-Jul-2018
Broker acquitted again of illegal short selling
SFC, 25-Jul-2018
Mr Wong Hung was acquitted 4 years ago by a different magistrate, David Chum Yau Fong. The SFC appealed to the Court of First Instance, which ordered a retrial, stating that "no reasonable magistrate…would have reached the same conclusion". This time, Magistrate Li Chi Ho reached the same conclusion.
SFC, 25-Jul-2018
Mr Wong Hung was acquitted 4 years ago by a different magistrate, David Chum Yau Fong. The SFC appealed to the Court of First Instance, which ordered a retrial, stating that "no reasonable magistrate…would have reached the same conclusion". This time, Magistrate Li Chi Ho reached the same conclusion.
Court orders re-trial after allowing SFC’s appeal in illegal short selling case
| Judgment (Chinese)
SFC, 27-Dec-2017
SFC, 27-Dec-2017
Presentation on HK securities market reform
These are the slides from a presentation by David Webb to accountants hosted by legislator Kenneth Leung this evening. (16-May-2016)
These are the slides from a presentation by David Webb to accountants hosted by legislator Kenneth Leung this evening. (16-May-2016)
SFC proposal sells HK short
We need your help! Support our submission to the SFC against draconian short-selling restrictions and reporting requirements in HK. Under 1 Country 2 Systems, there is no reason to follow China's demonisation of short-selling or to affirm that bias with a dragnet approach to reporting of short positions at 0.02% when long buyers only have to disclose at 5%. (28-Dec-2015)
We need your help! Support our submission to the SFC against draconian short-selling restrictions and reporting requirements in HK. Under 1 Country 2 Systems, there is no reason to follow China's demonisation of short-selling or to affirm that bias with a dragnet approach to reporting of short positions at 0.02% when long buyers only have to disclose at 5%. (28-Dec-2015)
SFC fines 3 JP Morgan entities total HK$30m
SFC, 15-Dec-2015
Note: there was apparently no actual failure to settle the 41,000 uncovered short sales (for which the firm held long positions in other legal entities), nor did any client get a worse price on their agency orders than they could have obtained in the market.
SFC, 15-Dec-2015
Note: there was apparently no actual failure to settle the 41,000 uncovered short sales (for which the firm held long positions in other legal entities), nor did any client get a worse price on their agency orders than they could have obtained in the market.
Short positions now on Webb-site Who's Who
Behold, a new feature, as we show weekly aggregate short positions as a percentage of outstanding shares. (29-Apr-2014)
Behold, a new feature, as we show weekly aggregate short positions as a percentage of outstanding shares. (29-Apr-2014)
Corporate investor convicted of illegal short selling
SFC, 5-Sep-2013
The company is 100%-owned by Hao Wen Holdings Ltd (8019), although the SFC chooses not to say so.
SFC, 5-Sep-2013
The company is 100%-owned by Hao Wen Holdings Ltd (8019), although the SFC chooses not to say so.
SFC publishes aggregated short positions
SFC, 7-Sep-2012
The first publication shows total short positions at 31-Aug of HK$172.1bn. The Webb-site database shows total Main Board capitalisation tonight at HK$18,994bn, so this is 0.9% of market cap. As about half of that is free float, the short position is about 1.8% of the free float. Short positions must be disclosed to the SFC if they exceed very low thresholds of 0.02% of issued shares or HK$30m (whichever is lower).
SFC, 7-Sep-2012
The first publication shows total short positions at 31-Aug of HK$172.1bn. The Webb-site database shows total Main Board capitalisation tonight at HK$18,994bn, so this is 0.9% of market cap. As about half of that is free float, the short position is about 1.8% of the free float. Short positions must be disclosed to the SFC if they exceed very low thresholds of 0.02% of issued shares or HK$30m (whichever is lower).
Retail investors convicted of illegal short selling
SFC, 31-May-2012
The short sales were on a Friday. On the evening of the next working day (a Monday) the results of a rights issue by Bao Yuan were announced, and certificates were dispatched the next day.
SFC, 31-May-2012
The short sales were on a Friday. On the evening of the next working day (a Monday) the results of a rights issue by Bao Yuan were announced, and certificates were dispatched the next day.
Mr Woo Sai Cheung suspended for 18 months for illegal short selling with secret accounts
SFC, 28-Oct-2011
SFC, 28-Oct-2011
Proposed law sells HK short
If the Government consulted the public on a speed limit of 50km/h, then set it at 4km/h, wouldn't you wonder why? That's what the SFC has done after a consultation which from the outset was a solution in search of a non-existent problem. We call on the SFC to withdraw or amend its proposed filing requirements for 0.02% short positions and to focus with Government on filling the gap in the existing law by requiring public disclosure of short positions, including derivatives, at the same level as long positions, currently 5%. What do you think? Take our poll! (7-Mar-2010)
If the Government consulted the public on a speed limit of 50km/h, then set it at 4km/h, wouldn't you wonder why? That's what the SFC has done after a consultation which from the outset was a solution in search of a non-existent problem. We call on the SFC to withdraw or amend its proposed filing requirements for 0.02% short positions and to focus with Government on filling the gap in the existing law by requiring public disclosure of short positions, including derivatives, at the same level as long positions, currently 5%. What do you think? Take our poll! (7-Mar-2010)
Research paper: how short-selling (postiively) affects liquidity in HK
SFC, 17-Apr-2009
"trading volume rose as short selling increased. Short selling improves market efficiency and increases turnover, be it directly or indirectly. As short selling helps price discovery, it encourages trading in the overall market...Short-selling activity helped narrow bid-ask spreads."
SFC, 17-Apr-2009
"trading volume rose as short selling increased. Short selling improves market efficiency and increases turnover, be it directly or indirectly. As short selling helps price discovery, it encourages trading in the overall market...Short-selling activity helped narrow bid-ask spreads."
SFC warns of action against abusive short selling
SFC, 30-Sep-2008
Comment: the SFC fails to define "abusive" short selling - nor does it suggest the possibility of "abusive" long buying.
SFC, 30-Sep-2008
Comment: the SFC fails to define "abusive" short selling - nor does it suggest the possibility of "abusive" long buying.
SFC suspends Mr Daniel Ng Shiu Wah, of Wo Fung Securities Ltd, for 6 weeks, fines him HK$383,300 for short selling in his mum's account
SFC, 21-Jul-2008
SFC, 21-Jul-2008
SFC fines Mr Chia Wei Chen, ex-Goldman Sachs, HK$50k, for failing to tag short sales
SFC, 26-Feb-2008
SFC, 26-Feb-2008
SFC prosecutes Mr Yip Po Keung, ex-Okachi Investments (HK) Co Ltd, for naked short selling
SFC, 12-Jul-2007
SFC, 12-Jul-2007
SFC CEO on the uptick rule
SFC, 1-Feb-2007
"the current uptick rule for short-selling may inhibit timely execution of transactions and affect the price-formation process in the stock market...The SFC is now working with the Exchange to consider putting in place a mechanism that would allow for the suspension of the uptick rule."
SFC, 1-Feb-2007
"the current uptick rule for short-selling may inhibit timely execution of transactions and affect the price-formation process in the stock market...The SFC is now working with the Exchange to consider putting in place a mechanism that would allow for the suspension of the uptick rule."
SFC fines Mr Ng Mau Chung HK$14k for poor standards and unintentional short selling of MAE (0851)
SFC, 16-Mar-2005
SFC, 16-Mar-2005
SFC prosecutes Mr Suen Chi Keung of Master Trademore Securities Ltd for naked short Selling
SFC, 15-Sep-2004
SFC, 15-Sep-2004
SFC prosecutes Chan Shing Chun for naked short selling and market manipulation and Johnnie Choy Tin Woo for naked short selling
SFC, 25-Mar-2003
SFC, 25-Mar-2003
SFC reprimands Chung Nam Securities Limited for allowing front-running and naked short-selling
SFC, 20-Apr-2000
SFC, 20-Apr-2000
SFC prosecutes Mr Sin Chun Kuen & Mr Chan Tat Fung of Quest Stockbrokers (HK) Ltd for naked short-selling
SFC, 4-Jan-2000
SFC, 4-Jan-2000
SFC reprimands Mr Tsui Moon Kwong of Core Pacific-Yamaichi for front-running and naked short-selling in girlfriend's account
SFC, 21-Oct-1999
SFC, 21-Oct-1999
SFC reprimands Ms Chan Yuen Yee trading as Tai Shing Stock Investment Co, SEHK censures and fines her HK$40k
SFC & SEHK, 15-Jun-1999
SFC & SEHK, 15-Jun-1999
SFC prosecutes Ng Kwok Leung, Chu Wing Kin, Chan Nga Sze and Tam Wah Shing for naked short selling
SFC, 25-Mar-1999
SFC, 25-Mar-1999
SFC prosecutes Mr Tsang Kwing Yin, Mr Lee Kang & Miss Lam Mei Lin for naked short selling
SFC, 15-Oct-1998
SFC, 15-Oct-1998
Appeals Tribunal upholds decision to suspend Mr Mak Chung Kong for 3 years for front-running & short-selling
SFC, 5-Jan-1998
SFC, 5-Jan-1998
SFC prosecutes Ms Mimi Tsang Lai Wah of Goldenway Securities for naked short-selling
SFC, 11-Sep-1997
SFC, 11-Sep-1997
SFC reprimands Ho Suk Jan of Victory Enterprises Co and prosecutes Wong Hing Wah, Law Woon Chun and Lam May Chi for short selling
SFC, 14-Aug-1997
SFC, 14-Aug-1997
SFC prosecutes and reprimands Lam Kin Chiu and Barry Wang Hing Ting for short selling
SFC, 13-Mar-1997
SFC, 13-Mar-1997
SFC prosecutes Wong Siu Chin, Lai Kam Hung, Poon Chun Keung and Wai Yuk Chun for short selling
SFC, 6-Mar-1997
SFC, 6-Mar-1997
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