On March 20, 2026, the Eastern Magistrates’ Courts granted an application to transfer a securities fraud case to the District Court, marking the first criminal prosecution for illegal short selling under section 300 of the SFO. The first hearing is set for 9 April 2026, involving defendants Mr Chan Hoi Shing and Mr Li Po Ching, who allegedly short sold shares of 28 companies. Bail conditions included surrendering travel documents and paying $280,000 each.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Case Transfer and Jurisdiction
On March 20, 2026, the Eastern Magistrates’ Courts approved the Department of Justice’s application to transfer the Securities and Futures Commission’s securities fraud matter to the District Court for criminal proceedings. This proceeding represents the inaugural criminal prosecution for securities fraud concerning illegal short selling under section 300 of the Securities and Futures Ordinance ("SFO") within the District Court.
Allegations and Upcoming Proceedings
The District Court is scheduled to hold its first hearing on 9 April 2026. The accused, Mr Chan Hoi Shing and Mr Li Po Ching, are alleged to have utilized a fraudulent scheme involving illegal short selling across shares of 28 Hong Kong-listed companies, constituting a contravention of section 300 of the SFO (Note 1).
Bail Conditions Imposed
During the hearing on 20 March, the Court granted bail to Chan and Li subject to specific conditions: (i) prohibition on leaving Hong Kong; (ii) surrender of all travel documents; (iii) regular reporting to the police station; (iv) cash bail of $280,000 per defendant; and (v) residence at a reported address with notification to the Police regarding any changes.
Source Documentation
Relevant details are available in the SFC’s press release issued on 6 November 2025.
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