HK's SFC: suspects include former staff of HKEX, his relatives

HK's SFC: suspects include former staff of HKEX, his relatives

Hong Kong’s SFC Investigates Insider Trading Allegations Involving Former HKEX Staff and Associates

Hong Kong’s Securities and Futures Commission (SFC) is investigating insider trading allegations that implicate former staff of the Hong Kong Exchanges and Clearing Ltd (HKEX), as well as their associates. A recent case involves Tam Cheuk-yin, a former assistant vice president at HKEX’s Listing Division, who was charged by the ICAC for allegedly accepting HK$150,000 in bribes to disclose confidential information about listed companies. Two additional individuals, Alan Chau Tsz-kong and Tang Hing-yu, were also charged for allegedly obstructing justice by hiding evidence, including cash, luxury items, and electronic devices.

The probe into HKEX and SFC staff has been ongoing since late 2024, with authorities examining whether regulatory personnel leaked sensitive announcements—such as privatization plans—from listed companies over several years. While the SFC and HKEX have declined to comment on specific investigations, the SFC has emphasized a "multi-pronged and uncompromising" enforcement approach to safeguard market integrity.

This case follows broader concerns about insider trading in Hong Kong. A 2024 study revealed that 10.26% of deals in the city were leaked in 2023, ranking it third-worst globally. Past incidents include suspicious price surges ahead of privatization announcements, such as those involving IMAX China Holdings Inc. and NWS Holdings Ltd., though these are not directly tied to the current probe.

The SFC has previously pursued high-profile insider trading cases, including charges against an SFC manager for leaking rights-issue details and an associate director for conspiring to obstruct a market manipulation investigation. In response to the latest allegations, HKEX stated it is reviewing internal controls to enhance transparency.

As the investigation continues, authorities may implement policy changes to address systemic vulnerabilities, reflecting ongoing efforts to reinforce trust in Hong Kong’s financial markets.