SFC crackdown hampered by market infrastructure

Author: Brian Yap | Published: 30 Mar 2017

Hong Kong’s securities regulator is increasingly focusing on trading irregularities by listed companies, but the territory’s market infrastructure is hindering its efforts.

Shares of Chinese selfie app maker Meitu dropped on March 21 after the territory’s media reported the Securities & Futures Commission (SFC) had requested trading records for the company three times since its IPO last December.

But the SFC is reportedly being hampered in its efforts to crack down on market manipulation due to its financial infrastructure. In mainland China, the China Securities Regulatory Commission has access to information about individual trading accounts, stocks purchased and trading patterns. But investors can open multilayer securities accounts in Hong Kong for their stock trades usually conducted by brokers, sometimes without using their real names.

"In Hong Kong it is difficult for regulators to access trading records for listed companies because of its market infrastructure, as it is...



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