The Eastern Magistrates’ Court has informed the public that it has found Mr Wong Hung not guilty of illegal short selling.
The Hong Kong Securities and Futures Commission (SFC) alleged that, on 20 occasions between 6 and 20 January 2012, Wong sold shares of five stocks through his securities account at Hung Sing Securities Limited, his employer at the material time, when the total of the shares he sold was more than the shares he held.
In deciding to acquit Wong, Magistrate Mr Li Chi-ho found that as Wong placed a large number of orders each day and that he did not gain any profit from selling the five stocks, he could not exclude the possibility that Wong was just careless and that he did not realise he was not holding sufficient interests in the five stocks when placing the sell orders.
The SFC is considering the Magistrate’s decision.
The official announcement can be seen here.