The Securities and Futures Commission has been granted a worldwide interim injunction in legal proceedings against former staff of Hong Kong Exchanges and Clearing (0388) Chan Ching-wah and his relatives, Lam Cho-man and Chau Chi-kwong by the Court of First Instance in Hong Kong .
The injunction relates to alleged insider trading involving the shares of at least seven Hong Kong-listed companies.
At the same time, the SFC has launched unprecedented legal proceedings in England and Wales, securing an interim injunction from the High Court of Justice, Business and Property Courts of England and Wales, to freeze the assets of Chan and Chau in England and Wales.
According to the SFC, between early June 2020 and early March last year, Chan, while serving as an assistant vice president in the Listing Division of HKEX, had access to confidential and price-sensitive information concerning several Hong Kong-listed companies prior to public announcements. He allegedly traded the shares of those companies through a securities account held by Lam. Lam is also alleged to have disclosed the inside information to Chau, who subsequently traded the relevant shares.
The Hong Kong Order and UK Order prohibit the three defendants from dealing with or reducing the value of their assets in Hong Kong and abroad, including in England and Wales. The cap is set at about HK$3.71 million for Chan and Lam combined, and HK$604,545 for Chau.
Both orders will stay in effect pending further hearings, scheduled for 27 February 2026 for the Hong Kong proceedings and 6 March 2026 for the UK proceedings.
The SFC said that it will continue to exercise the panoply of legal powers at its disposal to protect market participants and uphold the integrity of Hong Kong's securities markets even if market wrongdoers are outside Hong Kong.
Cynthia ZHONG
