The Securities and Futures Commission (SFC) of Hong Kong announces that the Market Misconduct Tribunal (MMT) has ordered Mr Wu Kam Shing, a former executive deputy general manager of China CITIC Bank International Limited, to disgorge close to $3 million in ill-gotten gains.
The Tribunal found that he had engaged in insider dealing in the shares of Bloomage BioTechnology Corporation Limited.
Between March 2017 and June 2017, Wu worked with a team of staff members of the bank in respect of a loan transaction to finance Grand Full Development Limited’s offer to privatise Bloomage.
As soon as the loan was approved by the bank on 22 May 2017, Wu, in possession of the inside information, started acquiring Bloomage shares – using his wife’s securities accounts he controlled and his personal trading accounts – accumulating a total of 1,275,000 shares before the privatisation scheme was announced to the public some three weeks later. Wu then disposed the majority of the shares, making a profit of $2,971,604.43.
The MMT, apart from ordering Wu to disgorge the illicit profit from his insider dealing, also made the following orders against him:
- a disqualification order prohibiting him from being a director, liquidator, or receiver or manager of the property or business, or be concerned or take part in management of any listed or unlisted corporation in Hong Kong, without leave of the court, for three years, effective from 29 July 2024;
- he is banned from dealing in securities, futures contracts, leveraged foreign exchange contracts or collective investment schemes in Hong Kong for three years, effective from 29 July 2024;
- he is not to engage in any conduct which constitutes market misconduct;
- he is to pay the Government and the SFC costs and expenses; and
- the MMT report be referred to the Accounting and Financial Reporting Council with a recommendation to take disciplinary action against Wu.
