Probe ends with fines for accused
A Hong Kong subsidiary of one of the mainland's largest brokerages, China Southern Securities, and its former managing director have been prosecuted for unregistered securities dealing.
The Securities and Futures Commission yesterday said it prosecuted CSSC International Limited (CSSCIL) and Shao Yan for carrying out securities dealing and acting as investment advisers without being registered.
CSSCIL was the Hong Kong representative office of China Southern Securities.
Both CSSCIL and Mr Shao pleaded guilty before Ms Polly Lo at the Western Magistrates court yesterday, and were each fined $15,000 and ordered to pay the SFC investigation costs of $42,470. The SFC found that between October 1996 and August last year, China Southern Corporate Finance, a wholly-owned subsidiary of CSSCIL, acted as an underwriter in some H-share offerings in Hong Kong.
China Southern Corporate Finance was the co-underwriter of H-share flotations of Anhui Expressway and Shenzhen Expressway in 1996.
Mr Shao and CSSCIL offered facilities for investors to subscribe and trade the shares.
The SFC also said the two acted as investment advisers for clients from November 1995 to August last year, while not registered.
The SFC said CSSCIL senior management was no longer involved with the firm's operations in Hong Kong.
The SFC also prosecuted Cheung Yee-man for acting as a dealer's representative at Malahon Securities while unregistered, and Mony Wong for aiding him. They were each fined $5,000 and were ordered to pay costs of $13,600.