SFC commences MMT proceedings against GEM-listed Taste•Gourmet’s top executives and associates over alleged manipulation scheme for Main Board transfer

Commencement of Proceedings Before the Market Misconduct Tribunal

On October 22, 2026, the Securities and Futures Commission (the 'SFC') commenced proceedings in the Market Misconduct Tribunal (the 'MMT'), pursuant to section 274 of the Securities and Futures Ordinance (the 'SFO'), alleging market manipulation against three senior executives of Taste•Gourmet Group Limited ('Taste•Gourmet'; stock code: 8371) together with five relatives, employees, and close associates. The alleged scheme concerned artificial inflation of the company's share price to facilitate its proposed transfer of listing from GEM to the Main Board of The Stock Exchange of Hong Kong Limited (the 'SEHK'). Taste•Gourmet shares were, and remain, listed on GEM.

Parties Named in the Action

The three executives named are Wong Ngai Shan, chairman and co-founder; Chan Wai Chun, chief executive officer and co-founder; and Yu Man To Gerald Maximillian, who served as chief financial officer at the material time. The five additional respondents (the 'Five Other Persons') comprise: Olivia Chan, a girlfriend of Mr./Ms. Yu; Wong Ngai Ming, Mr. Wong's elder brother; Huang Yizhen and Wong Ka Ying, nieces of Mr. Wong who were also employees of Taste•Gourmet; and Chan Man, a friend of Mr. Wong Ngai Ming and an employee of the company.

The Alleged Price Manipulation Scheme

It is alleged that during the period between 1 June 2020 and 18 September 2020 (the 'Relevant Period'), Messrs. Wong, Chan, and Yu directed or coordinated trading activity by the Five Other Persons in Taste•Gourmet shares—either directly or through intermediaries—with the purpose of artificially increasing and sustaining the share price at approximately $1.32 per share.

Regulatory Rationale for the Target Price

The target price was dictated by rule 8.09(2) of the Main Board Listing Rules, which required a minimum market capitalisation of $500 million for a GEM-to-Main Board transfer application. Given Taste•Gourmet's issued share count of 379,732,000 shares at that time, achieving such a valuation necessitated a per-share price of no less than $1.32.

Pattern of Alleged Manipulative Trading

During the Relevant Period, Taste•Gourmet's share price rose by 86%, from $0.73 to $1.36. The SFC alleges that the trading patterns exhibited characteristic hallmarks of market manipulation, including aggressive buy orders executed in proximity to market close and orders sufficient to move or determine closing prices. On six separate days within the Relevant Period, such trades constituted all daily volume in the company's shares. Communications among Messrs. Wong, Chan, Yu, and the Five Other Persons reportedly included discussions regarding the target share price as well as timing and methodology of order placement. The alleged scheme was further facilitated by substantial transfers of funds which were deployed shortly thereafter to purchase Taste•Gourmet shares.

Timeline of Key Events and Procedural Status

Taste•Gourmet's share price first closed above the $1.32 threshold on 27 July 2020. On 5 August 2020, the company announced that it had lodged a formal application to transfer its listing to the Main Board; shares closed at $1.35 on that date. The proposed transfer ultimately did not proceed as envisaged. Pending determination by the MMT upon the allegations set forth in the SFC's proceedings, questions of whether any market misconduct occurred and the identity of those who engaged therein remain unresolved.