Brothers-in-law, Mr. Lin Tai Fung and Mr. Or Chun Nin, were convicted for false trading in the shares of Pa Shun International Holdings Limited. They pleaded guilty to conspiring to maintain a false stock price and failing to disclose changes in their shareholdings.
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On May 15, 2025, Mr. Lin Tai Fung and his brother-in-law, Mr. Or Chun Nin, were convicted by the Eastern Magistrates’ Courts for conspiring to commit false trading in the shares of Pa Shun International Holdings Limited (Pa Shun) from April 9, 2017, to March 7, 2018. The Securities and Futures Commission ("SFC") brought this prosecution.
The Court also convicted Lin for failing to notify the Stock Exchange of Hong Kong Limited ("SEHK") on eight occasions between June 2, 2017, and March 14, 2018, when his trading in Pa Shun shares triggered a duty of disclosure that he did not fulfill.
The two defendants pleaded guilty to the offenses. It was established that Lin conspired with Or to maintain the closing share price of Pa Shun at or above a specific level. Lin's trading activities led to changes in his shareholding, which required disclosure to SEHK and Pa Shun.
The case was adjourned to June 10, 2025, for sentencing. Lin and Or were granted bail, with conditions that included a cash bail of $20,000 and a surety of $50,000.
Mr. Christopher Wilson, Executive Director of Enforcement at the SFC, emphasized that fixing an artificial closing price distorts the market and may mislead investors, stating that the SFC maintains a zero tolerance policy for market malpractices.
Pa Shun, previously known as Pa Shun Pharmaceutical International Holdings Limited, is listed on the Main Board of SEHK. Lin's actions violated section 295 of the Securities and Futures Ordinance ("SFO") and sections 159A and 159C of the Crimes Ordinance.
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