The party involved the Former Licensed Representative of Convoy Asset Management Limited (CAML).
From June to July 2016, Wong was part of a scheme to manipulate the stock price of Company A, which was listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited.
It was found that
- Wong succeeded in persuading X, a colleague, to join the scheme to manipulate the stock price of Company A.
- X then informed his clients of the scheme, and ten agreed to participate. He negotiated a deal with Wong that his clients would acquire their shares of Company A at market price, hold them for one to three months while the manipulators worked to drive up the share price, and finally sell only with X’s permission in exchange for cash rebates of 12% to 15% of the transaction value.
- On each occasion, Wong would coordinate and arrange the transactions between X’s clients and the manipulators. He would confirm all the details of the trade – such as date, time, size and price – with both parties in advance. Then he would provide detailed instructions to X for his clients’ bid orders to match the ask orders from the manipulators and X’s client’s bid orders. After completing the transactions, Wong would collect cash rebates from the manipulators and distribute that money to X for onward payment to his clients.
Therefore, after an investigation by SFC, SFC banned Wong from being licensed or registered to carry on regulated activities in future.
resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR9