Ding Yi Feng tanks in Hong Kong as market watchdog charges former chairman Sui Guangyi, 20 others with manipulating shares
- The Securities and Futures Commission said it had started proceedings in the against Sui and 20 other employees for manipulating shares in 2018
- Ding Yi Feng responded with a statement reiterating that Sui had stepped down from all of his positions at the company more than four years ago
On Tuesday morning, Ding Yi Feng responded with a statement reiterating that Sui had stepped down from all of his positions at the company – including non-executive director and chairman of the board – more than four years ago.
Sui is Ding Yi Feng’s largest shareholder with a 22.26 per cent stake, according to the company’s interim report in 2023.
Ding Yi Feng said it is in consultation with its legal advisors regarding a “Writ of Summons” – an official order for an individual to show up in court after being accused of committing an offence – and will address the issue in another announcement when appropriate.
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The SFC said it was seeking to “restore those affected to their pre-transaction positions” and prevent the defendants from disposing of any assets or property.
Ding Yi Feng tumbled as much as 32.6 per cent early in the morning session, before recovering some ground to finish Tuesday 23.6 per cent lower at HK$1.10. The stock has lost over 40 per cent so far this year.
It is not the first time that Ding Yi Feng’s shares have tanked. On January 16, the company’s stock sank by 31.3 per cent to HK$0.92 amid speculation that its Shenzhen affiliate was planning to list on an international digital exchange, which would also require that its assets be frozen for several months.
The Shenzhen company promised a 20-fold return on investment for those who committed to the scheme for 10 years, according to social media post. Ding Yi Feng issued a statement the following day denying the rumour.
The company’s net profit amounted to HK$97 million (US$12.4 million) for the six months ended June 2023, compared with a loss of HK$272 million a year earlier, according to last year’s interim report.
Founded in 2001, Ding Yi Feng describes itself on its website as using “classical eastern philosophy” to guide its investment decisions. It was once the top performer on the MSCI’s global stock index, rallying 8,500 per cent between the mid and late 2010s before the SFC launched its probe against the company in 2018.
