The SFC obtained an arrest warrant and interim injunction for suspected market manipulator Liu Shaolin. The warrant followed allegations of false trading and 'marking-the-close' activities, which manipulated Pak Wing Group's share price. Liu was ordered to freeze assets up to $3,158,400, which he did on 19 Feb 2025.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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The Eastern Magistrates’ Court has issued an arrest warrant for Mr. Liu Shaolin, instructing his apprehension to answer four charges of false trading in Pak Wing Group Holdings Limited shares. The Court made this order following an application from the Securities and Futures Commission ("SFC").
The SFC alleged that Liu manipulated Pak Wing's share price through 'marking-the-close' activities in May and June 2018, by placing orders to buy shares at inflated prices near market close. Liu subsequently disposed of his Pak Wing shares in June 2018, securing an illicit profit of approximately $2.9 million.
In conjunction with the arrest warrant, the SFC has initiated civil proceedings under section 213 of the SFO to restore affected counterparties to their pre-transaction positions. The Court of First Instance granted an interim injunction order on 13 December 2024, freezing Liu's assets in Hong Kong up to the value of $3.158,400. The injunction was lifted on 19 February 2025 following Liu’s payment of $3.158,400 as security into the Court.
False trading, as defined under section 295 of the Securities and Futures Ordinance ("SFO"), constitutes a criminal offense. The SFC issued restriction notices on 17 September 2018 to freeze profits made by Liu, which were subsequently lifted on 17 April 2025.
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