The Hong Kong Securities and Futures Commission (SFC) has issued restriction notices to 10 securities brokers, requiring them to prohibit the processing of certain assets in 31 trading accounts, as these accounts are involved in social media fraud.
SFC stated that between November 2021 and June 2022, a company listed on the Hong Kong Stock Exchange was suspected of manipulating the stock market, artificially using different methods to push up the company's stock price, and then using social media to lure investors into buying stocks sold by scammers at high prices.
These 10 securities firms are: Xingzheng International Securities Co., Ltd., Huafu Jianye Securities Co., Ltd., Futu Securities International (Hong Kong) Co., Ltd., Imperial International Securities Co., Ltd., Ligao Securities Co., Ltd., Huili Securities (Hong Kong) Co., Ltd., Yuanku Securities Co., Ltd., Yingli Securities Co., Ltd., Huasheng Capital Securities Co., Ltd., and Weiniu Securities Co., Ltd.
In order to protect the interests of the investing public and the general public, SFC prohibits these securities firms from disposing of, assisting, abetting, or inducing others to transfer any assets in these 31 trading accounts in any way without the written consent of the China Securities Regulatory Commission.
The Hong Kong Securities Regulatory Commission is conducting an investigation into this stock manipulation.
