SFC launches hearing over Tasty Concepts share-rigging claims
HK01 · 3 SOURCESabout 4 hours ago5 MIN
Summary
The Securities and Futures Commission has started proceedings in the Market Misconduct Tribunal over an alleged scheme to manipulate the share price of Tasty Concepts Holding Ltd (嚐高美, 8371) to support its planned transfer from GEM to the Main Board. The regulator’s case names chairman and co-founder Wong Ngai-shan (黃毅山), chief executive and co-founder Chan Wai-chun (陳慧珍), and former chief financial officer Yu Mang-to (余孟滔), together with five relatives, employees and close associates. The SFC alleges that trades between June 1 and September 18, 2020 artificially pushed the stock up and kept it around HK$1.32, the level needed to meet the HK$500 million minimum market-cap requirement for a Main Board transfer based on the issued share capital at the time. The planned transfer was later not completed.
Key Points
- The eight people targeted include three senior executives and five others: Chan Suet-yi, Wong Ngai-ming, Wong Yat-chun, Wong Ka-ying and Chan Man.
- The SFC alleges the three executives instructed or coordinated the five others to trade Tasty Concepts shares from June 1 to September 18, 2020.
- During that period, the share price rose 86% from HK$0.73 to HK$1.36, while the alleged target level was about HK$1.32.
- The regulator says the trading showed hallmarks of manipulation, including aggressive near-close buying and orders capable of moving or setting the closing price.
- The SFC also alleges communications discussed target prices, timing and order placement, alongside large fund transfers later used to buy the shares.
Why It Matters
For Hong Kong investors, the case focuses on whether a listed company’s market value may have been supported by coordinated trading rather than genuine demand, an issue central to confidence in price formation. It also puts attention on the integrity of transfer applications from GEM to the Main Board, where market-cap thresholds can affect listing eligibility.