SFC seeks share buy-out order against former chairman of Target Insurance (Holdings) Limited

Commencement of Legal Proceedings

On June 17, 2026, the Securities and Futures Commission ("SFC") commenced legal proceedings in the Court of First Instance against Mr Ng Yu, former chairman, executive director, and non-executive director of Target Insurance (Holdings) Limited (Target Holdings). The SFC seeks an order requiring Ng to buy out shares held by the investing public due to alleged breach of fiduciary duties that led to de-listing following trading suspension. As part of the action under section 214 of the Securities and Futures Ordinance ("SFO"), the SFC is also seeking disqualification orders against Ng and ten other former directors.

Named Respondents

The ten other former directors named as respondents include Mr Haywood Cheung, former executive director and chairman; Mr Chan Hok Ching, Mr Rui Yuanqing, and Mr Wei Weicheng, former executive directors; Ms Lau Ka Yee, former executive director and chief financial officer; Mr Jimmy Muk Wang Lit, former executive director and chief executive officer; Mr Peter Wan Kam To, Mr Alexander Leung Ho Yin, and Mr Wong Shiu Hoi, former independent non-executive directors; and one other former executive director.

Factual Basis and Allegations

The legal action arises from the SFC’s investigation into Nerico Brothers Limited’s ("NBL") failure to repay more than US$150 million placed with Target Insurance Company Limited (Target Insurance) between June 2020 and October 2021 for algorithmic trading in foreign currencies. The SFC alleges Ng was party to a fraudulent scheme to misappropriate the Funds, which were transferred to a Cayman-incorporated fund managed by Amber Hill Capital Limited ("AHCL") and controlled by Ng. Had Ng’s misconduct not occurred, trading would not have been suspended, and shareholders would have been able to sell shares on the open market.

Negligence and Asset Protection

The other respondents, most of whom were directors of Target Insurance at the material time, are alleged to have been negligent in allowing the Funds to be deposited with NBL despite significant concentration risk and failed to implement sufficient safeguards. To ensure funds would be available for any future buy-out order, the SFC issued restriction notices in April 2024 to Futu Securities International (Hong Kong) Limited and Interactive Brokers Hong Kong Limited, prohibiting both firms from dealing with assets held in certain client accounts owned by Ng.

Regulatory Sanctions and Corporate Status

In separate disciplinary actions, NBL’s and AHCL’s SFC licences were revoked, and their respective senior management, including Ng who was a director of AHCL, were banned from the industry for life. Target Holdings shares were listed on the Main Board from 15 January 2015 until 6 December 2023, with trading suspended on 5 January 2022. Target Insurance was an authorised insurer primarily engaged in providing motor insurance for taxis and public light buses, and was one of the largest insurers providing compulsory third-party insurance coverage for taxis in Hong Kong before being wound up on 26 September 2022.

Procedural History and Licences

The SFC filed the Petition under section 214 of the SFO on 10 October 2024. Proceedings against Ng were adjourned pending service on him in the Chinese Mainland, but service was later effected with the assistance of Mainland authorities, and the Court ordered the proceedings be restored at the case management conference on 17 June 2026. NBL was licensed to carry on Type 1, 2, 3, and 9 regulated activities, while AHCL was licensed to carry on Type 4 and 9 regulated activities. Ng was a director of AHCL from 1 March 2019 to 1 November 2021.

References and Updates

For further details, please refer to the SFC’s press release dated 25 April 2024, and press releases dated 28 August 2025 and 26 May 2026. Page last updated 17 Jun 2026.