Hong Kong Securities Regulatory Commission: Former Hong Kong Central Securities Registration Director Choi Chun-wai was jailed and fined for insider trading

The Zhitong Finance App learned that the Hong Kong Securities Regulatory Commission issued a document on December 18 stating that the Hong Kong Eastern District Magistrates' Court today sentenced Tsai Chun-wai (male), the former director of Hong Kong Central Securities Registration Co., Ltd. (00128) (Anning), to two months in prison today after earlier ruling that he was guilty of insider trading in shares of Anning Holdings Limited (00128) (Anning).

Choi was ordered to pay a fine of HK$289,500, an amount equal to the loss he avoided by trading Anning Shares. The court also ordered him to pay an investigation fee of HK$120,407 to the Hong Kong Securities and Futures Commission (HKSFC).

According to the circumstances of the case, Cai learned insider information about Anning's privatization while registered as the director of corporate services at Central Securities, and sold all 1,500,000 shares of Anning's shares on September 25, 2023 before Anning announced that the privatization had expired. As a result, Choi was able to avoid losses of approximately HK$289,500.

When sentencing Tsai, the court stated that although he expressed remorse for his misconduct, insider trading was a serious crime, and immediate imprisonment was an appropriate sentence in this case.

Mr Michael Duignan (Mr Michael Duignan), Executive Director of the Regulatory Enforcement Department of the Hong Kong Securities Regulatory Commission, said, “This conviction highlights the determination of the Hong Kong Securities Regulatory Commission to combat insider trading and improve the integrity of Hong Kong's financial markets. Immediate prison sentences by courts have a strong deterrent effect. It is unacceptable for anyone — particularly a trusted market professional — to misuse non-public data for personal gain, and will face serious consequences. The Hong Kong Securities Regulatory Commission will continue to take decisive enforcement actions to protect investors and maintain a level playing field for all market participants.”