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The Eastern Magistrates’ Courts on Thursday convicted two former licensees, Mr Yip Chi Wing and Mr Tsoi Chiu Kwan of false trading in the shares of Forebase International Holdings Limited following a prosecution by the Hong Kong Securities and Futures Commission (SFC).

Yip and Tsoi were licensed representatives of KGI Asia Limited and South China Securities Limited respectively at the material time. Both Yip and Tsoi are currently not licensed by the SFC.

Between 21 December 2015 and 17 October 2016, Yip and Tsoi maintained the turnover of the shares in Forebase by conducting manipulative and frequent transactions among various securities accounts under their control, resulting in an artificial increase in the trading volume of Forebase shares and creating a false or misleading appearance of active trading.

Yip and Tsoi pleaded guilty to the offence. The Court adjourned the case to 16 May 2024 for sentence. They were granted bail on these conditions: (i) not to leave Hong Kong; (ii) surrender all travel documents and (iii) reside at the reported residential address. They were also ordered to pay the SFC’s investigation costs.

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