On November 06, 2025, the Securities and Futures Commission ("SFC") commenced criminal proceedings against Mr. Chan Hoi Shing and Mr. Li Po Ching for illegal short selling in shares of 28 Hong Kong-listed companies. They are alleged to have falsely represented their shareholding and profited around $11 million. The case is adjourned to February 6, 2026, with bail conditions imposed.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On November 6, 2025, the Securities and Futures Commission ("SFC") initiated criminal proceedings in the Eastern Magistrates’ Courts against Mr. Chan Hoi Shing and Mr. Li Po Ching, accused of engaging in a fraudulent scheme involving illegal short selling in shares of 28 Hong Kong-listed companies between May 27, 2020, and December 29, 2020. The defendants were charged under section 300 of the Securities and Futures Ordinance.
The SFC contends that during the specified period, Chan and Li falsely represented that Chan held sufficient shares in these 28 companies to support sell orders placed via his securities account at Black Marble Securities Limited, contrary to the reality. This misrepresentation enabled the duo to engage in illegal short selling, ultimately generating a profit of approximately $11 million.
At the hearing held on November 6, 2025, neither Chan nor Li entered a plea. The case was adjourned until February 6, 2026, at which point the prosecution plans to seek a transfer to the District Court. Both defendants were granted bail with conditions including restriction from leaving Hong Kong, surrendering travel documents, regular reporting to a police station, posting a cash bail of $280,000 each, and residing at the reported address while notifying the Police of any change of residence.
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