Hong Kong SFC Granted Court Orders to Stop Investment Banker & Friend Who Had Left Hong Kong from Moving Assets Including $1.05 Million of Properties, Traded Shares with Insider Info of I.T Limited Privatization in 2020 & Earned $525,000 in 3 Months
3rd May 2023 | Hong Kong
Hong Kong Securities & Futures Commission (SFC) has been granted court orders to stop former investment banker & friend (Ms Tsang Ching Yi & Mr Barry Kwok Sze) who had both left Hong Kong from moving their assets including $1.05 million of properties. While working at an investment bank, Tsang Ching Yi shared with Barry Kwok Sze insider information on the privatization of I.T limited in 2020 and earned $525,000 in 3 months. Hong Kong SFC: “The SFC alleged that Tsang shared with her friend Kwok inside information relating to the privatisation of I.T that she acquired through her employment as a manager at an investment bank. Both of them then went on to deal in I.T shares using such inside information; they bought 2.844 million I.T shares through Kwok’s securities accounts in October and November 2020. After the proposed privatisation was announced by I.T in December 2020, they immediately sold the shares, yielding profits of HKD 4,123,248. Tsang and Kwok have both left Hong Kong and have taken steps to remove their assets from Hong Kong. In the light of the clear risk of dissipation, the SFC considers that it is necessary to obtain a freezing order to prevent Tsang and/or Kwok from further transferring their assets, including the suspected illicit gains of their trading, out of Hong Kong and to ensure any future orders made by the Court and/or the Market Misconduct Tribunal can be fulfilled if they are found liable for insider dealing.” See below for full Hong Kong SFC statement.
“ Hong Kong SFC Granted Court Orders to Stop Investment Banker & Friend Who Had Left Hong Kong from Moving Assets Including $1.05 Million of Properties, Traded Shares with Insider Info of I.T Limited Privatization in 2020 & Earned $525,000 in 3 Months “
Hong Kong SFC Granted Court Orders to Stop Investment Banker & Friend Who Had Left Hong Kong from Moving Assets Including $1.05 Million of Properties
- SFC obtains court order to freeze assets of suspected insider dealers of I.T Limited shares
2nd May 2023 – The Court of First Instance has granted an interim injunction order against Ms Tsang Ching Yi and Mr Barry Kwok Sze Lok in legal proceedings commenced by the Securities and Futures Commission (SFC), prohibiting them from removing assets, including selling of their real properties, up to the value of HKD 8,246,496 from Hong Kong in relation to an ongoing investigation into suspected insider dealing in the shares of I.T Limited (I.T) (Notes 1 & 2).
The SFC alleged that Tsang shared with her friend Kwok inside information relating to the privatisation of I.T that she acquired through her employment as a manager at an investment bank. Both of them then went on to deal in I.T shares using such inside information; they bought 2.844 million I.T shares through Kwok’s securities accounts in October and November 2020. After the proposed privatisation was announced by I.T in December 2020, they immediately sold the shares, yielding profits of HKD 4,123,248.
Tsang and Kwok have both left Hong Kong and have taken steps to remove their assets from Hong Kong. In the light of the clear risk of dissipation, the SFC considers that it is necessary to obtain a freezing order to prevent Tsang and/or Kwok from further transferring their assets, including the suspected illicit gains of their trading, out of Hong Kong and to ensure any future orders made by the Court and/or the Market Misconduct Tribunal can be fulfilled if they are found liable for insider dealing.
Notes:
- The proceedings were commenced under section 213 of the Securities and Futures Ordinance.
- The shares of I.T was listed on the Stock Exchange of Hong Kong Limited (SEHK) on 4 March 2005. On 6 December 2020, I.T announced its proposed privatisation through a scheme of arrangement. Prior to this announcement, the trading of I.T shares were suspended on 30 November 2020 at the closing share price of $1.94. After the trading of I.T shares resumed on 7 December 2020, the share price of I.T rose by 44.8% to close at $2.81. The scheme of arrangement became effective on 28 April 2021 and the listing of I.T shares was withdrawn from the SEHK on 30 April 2021.
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