Movie producer Wong Pak Ming convicted of insider dealing in SFC’s prosecution

On May 22, 2026, the Eastern Magistrates’ Court convicted well-known movie producer Mr Wong Pak Ming of insider dealing involving shares of Pegasus Entertainment Holdings Limited (Pegasus). The conviction followed a 16-day criminal prosecution initiated by the Securities and Futures Commission ("SFC"), arising from Mr Wong’s deliberate misuse of inside information obtained through his role as chairman and controlling shareholder. He advised his sister to trade the company’s shares prior to public disclosure, and the Court has adjourned the matter for sentencing on 9 June 2026.

Factual Findings and Trading Activity

During 2017 negotiations regarding the sale of his controlling stake, Mr Wong acquired non-public, price-sensitive information, including the signing of a memorandum of understanding and receipt of $10 million in earnest money from a potential buyer. Immediately following the receipt of the earnest money on 25 August 2017, he transferred $2 million to his sister, who commenced purchasing Pegasus shares that same day. Between 25 August 2017 and 17 October 2017, Mr Wong sent multiple WhatsApp messages instructing his sister on the timing and price of purchases, resulting in over nine million shares bought at prices significantly below the market rate following the 25 October 2017 announcement. The Court found that Mr Wong advised his sister to deal in shares while in possession of inside information he knew was confidential.

Enforcement Response

Mr Michael Duignan, the SFC’s Executive Director of Enforcement, stated that this case reaffirms no one is above the law and that insider dealing is a serious abuse of investor trust that undermines market integrity. He emphasized that where confidential information is misused for personal gain, the SFC will take decisive action to hold wrongdoers publicly accountable for their misdeeds.

Notes

Pegasus was listed on the Growth Enterprise Market on 31 October 2012 and transferred to the Main Board on 9 January 2015; the company is now known as Transmit Entertainment Holdings Limited (stock code: 1326). Relevant SFC press releases were issued on 27 February, 27 March, 25 April, 5 June, 25 August, and 24 October 2025. Earnest money is defined as a sum paid by a potential buyer to demonstrate serious intent to purchase. Although Mr Wong’s sister did not sell all shares immediately after the 25 October 2017 announcement, SFC calculations estimate her profits, including notional gains, exceeded HK$1 million. Page last updated 22 May 2026.