Hong Kong, Asia's leading financial centre
Caproasia.com | The leading source of data, research, information & resource for investment managers, professional investors, UHNW & HNW investors, and advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Caproasia - Learn more

This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $3 billion.

Hong Kong & Singapore Regulators Warn Investors of Increased Trading Risks Triggered by Social Media & Online Forums

4th February 2021 | Hong Kong

Hong Kong and Singapore regulators have issued statements, warning investors of increased trading risks triggered by social media and online discussion forums.

” Hong Kong & Singapore Regulators Warn of Increased Trading Risks “

The Hong Kong Securities and Futures Commission (SFC) in the statement warned investors that brokers may revise margin requirement in short notice and have the right to suspend trading.

Ads & Announcements

Monetary Authority of Singapore (MAS), and Singapore Exchange Regulation (SGX RegCo) noted investors interest in GameStop, AMC Entertainment Holdings, and BlackBerry and on discussion forums, may suggest speculative activities.  Some actions may amount to misconduct under the Securities and Futures Act (SFA).  View all warnings below.


SFC, MAS, SGX RegCo Issues Warning

Singapore | Leading financial centre in Asia

The Hong Kong Securities and Futures Commission (SFC), Monetary Authority of Singapore (MAS), and Singapore Exchange Regulation (SGX RegCo) have issued official statements over the last 2 days to warn investors, and in recent times, have increased issuing warnings & alerts to investors.


Hong Kong Regulator: SFC

  • SFC has taken note of the recent extreme price volatility in some stocks and related options in overseas markets and cautions investors on the risks of trading highly volatile securities, including overseas-listed stocks as investment discussion forums in social media gain prominence and become increasingly influential.
  • Investors should be aware that brokers may have rights under the terms and conditions of customer agreements to suspend trading services in some circumstances, including in the case of service suspension by overseas execution brokers.  In this situation investors may not be able to open new positions or close out existing positions, which may result in unexpected losses within a short period.
  • Investors should carefully manage market risks arising in any very volatile market.  In particular, brokers may need to revise the margin level for specific products within a very short period in order to properly manage their risk exposures and to meet settlement obligations to clearing houses or other execution brokers.  Investors may be asked to meet immediate margin calls to cover their open positions and provide additional margin deposits or collateral.

”  Brokers have the right to suspend trading services “

The SFC is in close dialogue with local and overseas regulatory counterparts about investor risks in volatile stocks, and will work to ensure fairness and orderliness in our markets.  The SFC will not hesitate to take regulatory action if there is evidence that intermediaries are not acting in the best interests of their clients and the integrity of the market.



Singapore Central Bank & Regulator: MAS & SGX RegCo

  • Advise the investing public to be on heightened alert to the risks related to trading in securities incited by online discussion forums and social media chat groups.
  • Noted investor interest in Singapore in recent activities in US markets relating to stocks such as GameStop, AMC Entertainment Holdings, and BlackBerry.  Discussions in online websites and platforms suggest the possibilities for similar speculative activities in the Singapore stock market.
  • Public should be aware that certain individuals may exploit this interest for their own benefit through “pump and dump” activities that can amount to market misconduct under the Securities and Futures Act (SFA)
  • These perpetrators may do so by setting up positions in certain securities. They then use social media chat groups to incite investors to buy these securities in a manner similar to how individual investors collectively pushed up certain share prices in the US.
  • As soon as the prices of these securities have risen to specific levels, such perpetrators may then sell the securities which they had accumulated earlier without alerting other investors.

” can amount to market misconduct under the Securities and Futures Act (SFA) “

Any conduct that intentionally, knowingly, or recklessly creates a false or misleading appearance regarding the active trading, market or price of securities is prohibited under the SFA. Other prohibited acts include but are not limited to the making or dissemination of false or misleading statements, fraudulent inducement to deal in securities, and the employment of manipulative and deceptive devices. Investors should make sure they refrain from conduct that could infringe the SFA.  Firm action will be taken against those who breach the SFA or other laws and regulations.

MAS and SGX RegCo are closely monitoring market activities for signs of false trading or other forms of misconduct. Restrictions may be placed on the trading accounts of those suspected of such misconduct and the relevant securities may be placed under designation or suspension. MAS and SGX RegCo are working closely with SGX member firms to ensure our market remains orderly.


$11.7 million in Penalties, 9 Convicted for Market Misconduct

In the 2020 Monetary Authority of Singapore (MAS) Enforcement Report covering the period January 2019 to June 2020  (1.5 years), the central bank of Singapore imposed $11.7 million in civil penalties and secured criminal conviction on 9 individuals for market misconduct and related offences.


Ashley Alder, SFC’s Chief Executive Officer:

“Cracking down on organised investment fraud on online platforms is a high priority.  To avoid falling victim to these scams, the public must be vigilant when offered unsolicited investment advice or tips on social media.”



About Securities and Futures Commission (HK)

The Securities and Futures Commission (SFC) is an independent statutory body set up in 1989 to regulate Hong Kong’s securities and futures markets.

We derive our investigative, remedial and disciplinary powers from the Securities and Futures Ordinance (SFO) and subsidiary legislation. Operationally independent of the Government of the Hong Kong Special Administrative Region, we are funded mainly by transaction levies and licensing fees.

Visit: Hong Kong Securities and Futures Commission


Singapore Exchange Regulation (SGX RegCo) Board

Founded in 2017, SGX RegCo Board is a subsidiary of Singapore Exchange (SGX) and is a non-profit group to undertake all governance and regulatory function of SGX to ensure integrity and stability of the markets and clearing houses operated by SGX.

SGX RegCo Leadership

  • Professor Tan Cheng Han, Chairman and Profession of Law at National University of Singapore
  • Tan Boon Gin, CEO and Chief Regulatory Officer of SGX


Monetary Authority of Singapore

About Monetary Authority of Singapore

The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. The Monetary Authority of Singapore (MAS) promotes sustained, non-inflationary economic growth through appropriate monetary policy formulation and close macroeconomic surveillance of emerging trends and potential vulnerabilities.

As an integrated financial supervisor, MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors, and stock exchanges. It is also responsible for well-functioning financial markets, sound conduct, and investor education.

MAS also works with the financial industry to promote Singapore as a dynamic international financial centre. It facilitates the development of infrastructure, adoption of technology, and upgrading of skills in the financial industry.

Visit: Monetary Authority of Singapore

2021 Data Release
2020 List of Private Banks in Hong Kong
2020 List of Private Banks in Singapore
2020 Top 10 Largest Family Office
2020 Top 10 Largest Multi-Family Offices
2020 Report: Hong Kong Private Banks & Asset Mgmt - $4.49 Trillion
2020 Report: Singapore Asset Mgmt - $3.48 Trillion AUM

Register Below
Latest 2022 data & reports, insights & news
Every Saturday & Sunday 2 pm
Direct to your inbox
Save 2 to 8 hours per week. Organised for success

For Investors | Professionals | Executives

New to Caproasia?
Join 10,000 +
Learn More | Sign Up Today

For CEOs, Heads, Senior Management, Market Heads, Desk Heads, Financial Professionals, Investment Managers, Asset Managers, Fund Managers, Hedge Funds, Boutique Funds, Analysts, Advisors, Wealth Managers, Private Bankers, Family Offices, Investment Bankers, Private Equity, Institutional Investors, Professional Investors

Get Ahead in 60 Seconds. Join 10,000 +
Save 2 to 8 hours weekly. Organised for Success.

Subscribe / Sign Up / Contact Us

    Mailing ListFree TrialInvestor $680 YearlyProfessional $680 YearlyExecutive $2,000 Yearly

    Private WealthFamily OfficePrivate BankingWealth ManagementInvestmentsAlternativesPrivate MarketsCapital MarketsESG & SICEO & EntrepreneursTax, Legal & RisksHNW & UHNWs Insights

    Caproasia | Driving the future of Asia
    a financial information technology co.
    since 2014

    Web links may be disabled on mobile for security.
    Please click on desktop.

    Previous articleWorld Economic Forum 2021 in Singapore Postponed from May to August
    Next articleKuaishou IPO Rises 160% on Day 1, Raised $5.32 Billion
    Caproasia.com covering capital markets, investments and private wealth in Asia. Our users manage, advise & invest $25 trillion assets in Asia