$4 billion in Hong Kong's largest market manipulation conviction

Looking at the latest market in September, when Morgan Stanley's former chief executive, Mr Du, was convicted of insider trading, the most-involved securities market operation in Hong Kong was convicted in Friday. According to the SFC's announcement, 4 people, such as Chen Maiyuan, are involved in controlling the Pan Sea Hotel 00292. HK) share price, creating market illusion, artificially pull high market value of HK $4 billion. The case was prosecuted by the Attorney General of Hong Kong on behalf of the HKSAR Government. After a two-week trial, the Hong Kong District Court convicted 4 persons of manipulating the market in Friday.　　The case was adjourned to November 26 and 4 persons were granted bail of HK $200,000 respectively.　　This is the first case of manipulation of the stock market under the Hong Kong Securities and Futures Ordinance. The survey showed that from August 1, 2005 to September 5, 4 people conspired to create false or misleading appearances in respect of the Pan Sea Hotel market. 4 of people actually control the trading activities, the pan-Sea hotel shares pushed up 78%, leading to a rise in market value of HK $4 billion.　　Chen Maiyuan provides transaction funds for the remaining 3 defendants, trading mainly between the latter three, with a turnover of more than half of the trans-Sea hotel turnover in the above period, involving about HK $190 million. The judge considered that the 4 defendants were seasoned investors who used as many as 20 stockbrokers to deal with the transactions, not only to increase the transaction costs, but also to delay the transaction, not rational investors.　　But the defendant in the past market operation has been quite experienced, and therefore was found to be cooperative conspiracy to affect the stock price, the creation of an active trading illusion. These market operations violate the provisions of regulation No. 295 of the Securities and Futures Ordinance.　　Under the Hong Kong decree, any contravention of section No. 295 of the Securities and Futures Ordinance may be punishable by a maximum penalty of 10 years ' imprisonment and a fine of $10 million. The SFC also alleges that two of the 4 defendants were not asked to answer questions under the Securities and Futures Ordinance during their investigation. The charge will be tried on December 17.