The Hong Kong Securities and Futures Commission has filed charges in a case of securities fraud involving illegal short selling.

On November 6, the Securities and Futures Commission of Hong Kong (SFC) initiated criminal proceedings against Chan Hoi-sing (male) and Lee Po-ching (male) at the Eastern Magistrates' Court, accusing them of using fraudulent schemes to illegally short sell shares of 28 Hong Kong-listed companies, in violation of Section 300 of the Securities and Futures Ordinance. The SFC alleged that between May 27, 2020, and December 29, 2020, Chan and Lee falsely claimed that Chan held a sufficient number of shares in these 28 companies to support the sell orders placed through his securities account at Pak Lung Securities Limited, when in fact he did not. As a result, they were able to engage in illegal short selling of shares in these companies and make profits of approximately HK$11 million. The defendants did not enter a plea at today's hearing, and the case was adjourned to February 6, 2026, for the next hearing. The prosecution will apply for the case to be transferred to the District Court for trial at that time. Chan and Lee were granted bail pending the next hearing, on the condition that they: not leave Hong Kong; surrender all travel documents; report to the police station regularly; each post bail of HK$280,000; and notify the police of any changes in their declared address of residence.