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
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...