Hong Kong’s Securities and Futures Commission (SFC) has commenced criminal proceedings against Mr Ken Yiu Ka Lun for alleged insider dealing in the shares of HKTV. The SFC alleges that Yiu, a former senior regulatory affairs manager of Hong Kong Television Network Limited (HKTV), purchased a total of 101,000 shares of HKTV on 19 & 20 December 2013, when he was involved in HKTV’s acquisition of a mobile television licence. He disposed of all his HKTV shares on 20 December 2013, shortly after HKTV’s announcement of the acquisition.

HKTV made its announcement on December 20 after the market closed. The announcement revealed its acquisition of a mobile television license from a wholly-owned subsidiary of China Mobile Hong Kong for HK$142.2 million in a bid to launch mobile television services.

Hong Kong Television Network Limited (stock code: 1137) was listed on the Main Board of the Stock Exchange of Hong Kong Limited in 1997. On 19 Dec 2013, HKTV’s share price was HK$2.23 with a moderate market turnover of 2.8 million and it rose to HK$2.32 on December 20. It soared to HK$3.85 on the next trading day and the trading turnover amounted to 283.77 million. Theoretically, Yiu could have gained HK$163,630 if he bought the shares at HK$2.23 on December 19 and sold them at HK$3.85 on December 21.

The criminal proceedings have commenced in the Eastern Magistrate’s Court where Yiu did not enter plea to the charges against him and the case was adjourned to 5 November 2019.

 

Date: 29 Oct 2019

Argus Global specializes in regulatory compliance. We can help you determine if your company is up to date with the latest regulations with compliance reviews, and we offer as well ongoing support for all your compliance needs.

 

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