Securities and Futures Commission seeks court order to freeze HK assets

The Securities and Futures Commission (SFC) recently made an announcement regarding its application to the Court of First Instance for an interim order aimed at freezing assets set aside to compensate investors impacted by a suspected ‘pump-and-dump’ operation associated with Majesty Holdings (01025.HK). The SFC has taken legal action against 17 individuals, referred to as the defendants, under Section 213 of the Securities and Futures Ordinance due to their alleged manipulation of Majesty shares between February and May 2019. The application for the interim order is part of these legal proceedings.

Moreover, a criminal trial involving 12 out of the 17 defendants from the aforementioned legal proceedings is scheduled to commence in the District Court on April 6, 2027. These individuals are facing multiple criminal charges connected to the same purported ‘pump-and-dump’ scheme. The SFC’s application seeks to place restrictions on asset disposal by five of the defendants, up to an approximate value of HKD 219 million, which reflects the estimated losses incurred by affected investors.

The initial hearing for this application took place on the 26th of the month, during which the court issued further directives and adjourned the main hearing of the application to December 22, 2025. As the legal proceedings are ongoing, the SFC has refrained from providing additional comments at this time.

Majesty Holdings made its debut on the Main Board of the Stock Exchange on February 28, 2019, reaching a peak of HKD 70.37 in May of the same year, only to close at HKD 0.285 recently. The market data provided is for informational purposes only and does not constitute investment advice related to Futu. While efforts are made to verify the accuracy and authenticity of such information, there is no guarantee of its reliability.

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