A retail trader, Ng Ka Hei, was convicted of false trading in Hong Kong. He used 'scaffolding' and wash trades to manipulate stock prices, making a profit of $117,715. Sentencing is scheduled for February 12, 2026.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On January 22, 2026, Mr. Ng Ka Hei was convicted by the Eastern Magistrates’ Courts on seven counts of false trading in the shares of six Hong Kong-listed companies. The conviction stemmed from a criminal prosecution initiated by the Securities and Futures Commission ("SFC").
The SFC alleged that between September 20, 2022, and October 24, 2023, Ng employed a strategy known as 'scaffolding,' repeatedly placing and canceling trading orders at progressively higher prices. Additionally, he conducted wash trades across his multiple securities accounts, acting as both buyer and seller of the shares.
These trading activities manipulated the share prices, misleading market participants into believing there was genuine market activity at artificial price levels. Ng profited from this situation, earning a total of $117,715. He pleaded guilty to all seven counts and the court adjourned the case for sentencing to February 12, 2026. A cash bail of $10,000 was granted to Ng during this period.
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