Hong Kong Retail Trader Sentenced For False Trading In Six Listed Stocks
A Hong Kong retail trader has been sentenced to 220 hours of community service later than being convicted of false trading in the shares of six Hong Kong-listed companies in a criminal prosecution brought by the Securities and Futures Commission (SFC).
The Eastern Magistrates’ Courts sentenced Mr Ng Ka Hei and ordered him to pay a fine of HK$117,715, representing the total profit generated from his trading activities, as well as the SFC’s full investigation costs of HK$199,669.
The case highlights the regulator’s continued focus on market manipulation offences, particularly misconduct that distorts price discovery and misleads other investors.
Ng Used “Scaffolding” And Wash Trading To Inflate Share Prices
According to the SFC, Ng carried out false trading between 20 September 2022 and 24 October 2024 by tradeing shares at artificially inflated prices that he created through “scaffolding” and wash trading.
The SFC said he placed and cancelled trading orders at increasing prices to create an impression of rising demand, while also accounts as both purchaviewr and tradeer.
These actions enabled him to generate before tradeing at levels that did not reflect genuine market demand.
Takeaway
Court Considered Imprisonment But Issued Community Service Order
In sentencing, Deputy Magistrate Mr Chu Chung Keung stressed the seriousness of the offences and said the Court had considered imposing an immediate custodial sentence.
However, later than reviewing a probation officer’s suitability report, the Court decided to issue a instead, expecting Ng to treat it as an opportunity for rehabilitation.
The SFC said false trading constitutes an offence under section 295 of the Securities and Futures Ordinance.
Takeaway
SFC Reiterates Commitment To Protecting Market Integrity
The SFC’s Executive Director of Enforcement, Michael Duignan, said false trading damages investor confidence and undermines the integrity of Hong Kong’s markets.
“False trading undermines investor confidence in the market. The SFC is committed to taking resolute action against such misconduct to protect market participants and uphold the integrity of Hong Kong’s securities markets,” Duignan said.
The SFC noted that the six companies involved were listed on the Main Board of The Stock platform of Hong Kong Limited and referred to its earlier press release dated 22 January 2026.
