SFC rejects loss due to suspension
The Securities and Futures Commission (SFC) has rejected claims its policy of suspending stocks with unusual price movements had caused investors to lose money.
The commission is facing legal action from a group of up to 70 investors seeking compensation for losses they allege were caused by the regulator.
The aggrieved investors - led by retail investor Helen Wong - are to meet next week to discuss their case with a lawyer prior to taking action.
They will claim protracted suspension of certain stocks prevented them from cashing out of their investments, sources said.
An SFC official said that, in many cases, the companies had themselves requested a suspension.
The source pointed out that Hong Kong Daily News - the stock in which Ms Wong had invested and lost $13 million after a four-month suspension - requested that trading in its shares be halted.
Ms Wong said she did not accept the SFC's explanation.
'It will be left to the judge to decide whether the SFC should compensate investors,' she said.
