NewHong Kong probing overseas property scams that cost buyers HK$500m in losses
Hong Kong’s SFC is looking into complaints of overseas property scams, which may have cost investors as much as HK$500 million in losses.
Hong Kong police and the securities regulator are looking into overseas property projects that have gone into default, costing investors as much as HK$500 million (US$64.4 million) in losses, according to a Hong Kong lawmaker.
Legislative Council member James To Kun-sun, who has been receiving complaints concerning overseas real estate investments, said he urged the Securities and Futures Commission (SFC) to investigate the cases at a meeting with the agency last week.
The SFC will make an announcement regarding the cases, while the Commercial Crime Bureau (CCB) of the Hong Kong police is also looking into them, To said.
“The CCB has finished the first stage of the investigation to collect statements from investors,” he said in a telephone interview with the South China Morning Post. “They are now seeking legal advice from the Department of Justice and looking for representative cases in order to bring up prosecutions.”
Hong Kong’s record housing prices and the strength of the currency have prompted many city residents to invest in overseas properties, but complaints against foreign developers and local agencies have also risen in the past few years.
It was after the cases were reported widely by global media that the UK police started to take the cases more seriously
While local authorities have clear guidelines for purchasing properties in Hong Kong, the city has few protections in place when it comes to regulating agents promoting overseas property investment, which has left investors involved in such schemes highly exposed to uncertain risks.