The Market Misconduct Tribunal has found Ms. Cynthia Chen Si Ying and Mr. Wen Lide guilty of insider dealing with Dan Form shares. The tribunal ordered them to disgorge over $1 million in illicit profit, banned them from managing any listed corporation for four years, and imposed other penalties.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On July 17, 2025, the Market Misconduct Tribunal ("MMT") found Ms. Cynthia Chen Si Ying, a former company secretary of Asiasec Properties Limited (formerly Dan Form), and her Mainland associate, Mr. Wen Lide, guilty of insider dealing involving Dan Form shares. The tribunal ordered them to disgorge a total of over $1 million in illicit profit. Additionally, Chen was disqualified from managing any listed corporations in Hong Kong for four years.
The misconduct was traced back to the insider information regarding the sale of Dan Form’s controlling stake. Chen and Wen were found to be in possession of this information by September 2, 2016, which concerned the acquisition of Mr. Dai Xiaoming’s interest in Dan Form at $2.75 per share. Chen shared this information with Wen, who then dealt in Dan Form shares from September 5 to 19, 2016, purchasing 1,250,000 shares through his account at Shenwan Hongyuan Securities ("H.K.") Limited, and additional 250,000 and 50,000 shares through his and his wife’s accounts at Grand Investment (Securities) Limited on September 6 and 12, respectively.
Chen was found to have a financial interest in Wen’s trading activities through his Shenwan Hongyuan account. The MMT considered Chen’s misconduct severe due to her managerial role at Dan Form, her counseling of Wen, and her use of a complex layering strategy to conceal her profits. The tribunal ordered the disgorgement of $794,347 from Chen and $206,067 from Wen, representing the profits from insider dealing. Both were also directed to cover the costs and expenses incurred by the government and the SFC.
Further sanctions include four-year cold shoulder orders against Chen and Wen, prohibiting them from dealing in any securities, futures, or collective investment schemes in Hong Kong. They are also barred from engaging in any conduct that constitutes market misconduct, subject to relevant provisions of the Securities and Futures Ordinance ("SFO"). The details of the disgorgement orders and maximum periods for the penalties are outlined in the accompanying notes.
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