Hong Kong’s securities watchdog freezes brokerage accounts for suspected involvement in misleading data
- The SFC did not name the listed company suspected of disclosing false information
- The securities watchdog has stepped up oversight on market misconduct over recent months
Hong Kong’s securities watchdog has frozen an unknown number of client accounts managed by three brokerages which were related to the suspected disclosure of false or misleading financial information by a listed company.
The Securities and Futures Commission (SFC) has issued restriction notices that prohibit Changjiang Securities Brokerage, Haitong International Securities Company and Kingston Securities from dealing with assets held in those accounts, it said in a statement on Friday.
The brokerages are not the focus of the SFC’s investigation, the SFC said. Their operations and other clients will not affected.
The listed company, which was not named by the SFC, is suspected to have disclosed false or misleading financial information in various announcements, annual results and annual reports.
The SFC has over the past few months intensified its crackdown on market misconduct including corporate fraud, corruption, and substandard work by sponsors of initial public offerings.