{"id":29187,"date":"2024-12-02T13:20:07","date_gmt":"2024-12-02T13:20:07","guid":{"rendered":"https:\/\/prelive-tdw.visibleone.app\/insight-and-news\/legal-update-mmt-sanctions-against-china-forestry-holdings-company-limited-ceo-for-market-misconduct-order-to-disgorge-hkd353430000\/"},"modified":"2025-09-22T03:08:04","modified_gmt":"2025-09-22T03:08:04","slug":"legal-update-mmt-sanctions-against-china-forestry-holdings-company-limited-ceo-for-market-misconduct-order-to-disgorge-hkd353430000","status":"publish","type":"insight-and-news","link":"https:\/\/www.tannerdewitt.com\/zh-hans\/insight-and-news\/legal-update-mmt-sanctions-against-china-forestry-holdings-company-limited-ceo-for-market-misconduct-order-to-disgorge-hkd353430000\/","title":{"rendered":"Legal Update \u2013 MMT sanctions against China Forestry Holdings Company Limited CEO for market misconduct \u2013 order to disgorge HKD353,430,000"},"content":{"rendered":"\n    \n\n<div style=\"background-image:url('https:\/\/www.tannerdewitt.com\/wp-content\/themes\/tanner-de-witt\/images\/insightdetails.jpeg')\"\n    class=\"insight-news-detail-hero\" id=\"insight-news-detail-hero\">\n\n\t\t<div style=\"background-color:\" class=\"insight-news-detail-hero-overlay \"><\/div>\n            <div class=\"z-[0]\">\n                <div class=\"insight-news-breadcrumbs flex items-end practice-areas-featured-breadcrumbs \">\n                    <a class=\"page-link no-underline\" href=\"https:\/\/www.tannerdewitt.com\/zh-hans\/\">Home<\/a>                <\/div>\n\n\n                <div class=\"hero-title\">\n                    <h1>\n                        Legal Update \u2013 MMT sanctions against China Forestry Holdings Company Limited CEO for market misconduct \u2013 order to disgorge HKD353,430,000                    <\/h1>\n                <\/div>\n                \n                    <div style=\"\" class=\"hero-date \">\n\n                        <span class=\"month\">Dec<\/span>\n                        <span class=\"day\">02<\/span>\n                        <span class=\"year\">2024<\/span>\n                    <\/div>\n\n            <\/div>\n    \n\n    \n\n\n\n<\/div>\n\n\n\n<script >\n    (function () {\n        document.addEventListener(\"DOMContentLoaded\", () => {\n\n            const breadCrumbsContainer = Array.from(document.querySelectorAll(\".practice-areas-featured-breadcrumbs\"));\n\n            breadCrumbsContainer.forEach(container => {\n                const breadCrumbLinks = Array.from(container.querySelectorAll('.page-link'));\n                const breadCrumbSeperators = Array.from(container.querySelectorAll('.separator'));\n\n                if (Array.from(breadCrumbLinks).length === 1) {\n                    const homeNode = breadCrumbLinks[0];\n\n                    if (!homeNode) {\n                        return\n                    }\n\n                    const postTypeNode = homeNode.cloneNode(true);\n                    postTypeNode.textContent = \"Insights and News\";\n                    container.insertAdjacentHTML('beforeend', `<span class=\"separator practice-areas-featured-breadcrumb-item-slash\">\/<\/span>`)\n                    container.insertAdjacentElement('beforeend', postTypeNode)\n                    breadCrumbLinks.push(postTypeNode);\n\n                    if (\"Insights\") {\n                        const categoryNode = homeNode.cloneNode(true);\n\n                        categoryNode.textContent = \"Insights\";\n                        container.insertAdjacentHTML('beforeend', `<span class=\"separator practice-areas-featured-breadcrumb-item-slash\">\/<\/span>`)\n                        container.insertAdjacentElement('beforeend', categoryNode)\n                        breadCrumbLinks.push(categoryNode);\n                    }\n\n\n                    const titleNode = homeNode.cloneNode(true);\n\n                    titleNode.textContent = \"Legal Update \u2013 MMT sanctions against China Forestry Holdings Company Limited CEO for market misconduct \u2013 order to disgorge HKD353,430,000\";\n                    container.insertAdjacentHTML('beforeend', `<span class=\"separator practice-areas-featured-breadcrumb-item-slash\">\/<\/span>`)\n                    container.insertAdjacentElement('beforeend', titleNode)\n                    breadCrumbLinks.push(titleNode);\n\n\n\n\n                }\n\n                breadCrumbLinks.forEach((link, index) => {\n\n                    link.classList.add('practice-areas-featured-breadcrumb-item-name');\n                    const origin = window.location.origin;\n                    const href = window.location.href;\n\n                    const originSplitter = window.location.href.includes(\"insight-and-news\") ? \"insight-and-news\" : window.location.href.includes('insights-and-news') ? \"insights-and-news\" : \"\"\n\n                    const paths = href.split(originSplitter);\n                    const links = paths[1].split(\"\/\").filter(Boolean)\n\n\n                    const resolvedOrigin = originSplitter ? (href.split(originSplitter)[0] || \"\") : (origin + \"\/\")\n\n                    if (index === 0) {\n\n                        if (!originSplitter) {\n                            link.href = origin\n                        } else {\n                            link.href = resolvedOrigin;\n                        }\n\n\n                    } else if (index === 1) {\n                        link.href = resolvedOrigin + originSplitter\n\n                    }\n                    else if (index === 2) {\n                        console.log(links)\n                        link.href = resolvedOrigin + originSplitter + \"\/\" + (links[0] || \"\")\n                    }\n                    else if (index === 3) {\n\n                        link.href = resolvedOrigin + originSplitter + \"\/\" + (links[0] || \"\") + \"\/\" + (links[1] || \"\")\n\n                    }\n\n\n\n                    \/\/ const words = link.textContent.split(\" \")\n                    \/\/ if (words.length > 4) {\n                    \/\/     link.textContent = words.slice(0, 4).join(\" \") + \"...\"\n                    \/\/ }\n\n                })\n\n                breadCrumbSeperators.forEach(separator => {\n                    separator.textContent = \"\/\"\n                    separator.classList.add('practice-areas-featured-breadcrumb-item-slash')\n                });\n\n\n            })\n\n\n        })\n        removeDivTag()\n    })();\n\n    function removeDivTag() {\n        console.log(\"remasfljas\");\n        const editorContainer = document.querySelector(\".editor-wysiwyg\");\n        \/\/ editorContainer.innerText = editorContainer.innerText.replace(\"<\/div>\", \"\")\n        Array.from(editorContainer.childNodes).forEach(el => {\n            if (el.textContent.includes(\"<\/div>\")) {\n                el.textContent = \"\"\n            }\n        })\n    }\n<\/script>\n\n<div class=\"editor-wysiwyg my-[40px]\">\n<div class=\"single-section\">\n<p>On 28 November 2024, the Securities and Futures Commission (\u201c<strong>SFC<\/strong>\u201d) announced that the Market Misconduct Tribunal (\u201c<strong>MMT<\/strong>\u201d) ordered:<\/p>\n<p>1) Mr. Li Han Chun, the former chief executive officer of China Forestry Holdings Company Limited (\u201c<strong>China Forestry<\/strong>\u201d), formerly listed on the Main Board of the Stock Exchange of Hong Kong (Stock Code: 930); and<\/p>\n<p>2) his investment vehicle, Top Wisdom Overseas Holdings Limited (\u201c<strong>Top Wisdom<\/strong>\u201d),\u00a0<\/p>\n<p>to disgorge HKD353,430,000 which represents the loss they avoided by insider dealing of China Forestry\u2019s shares.<\/p>\n<p>The MMT also ordered that Mr. Li Han Chun and Top Wisdom pay compound interest on the disgorged sum of HKD353,430,000, calculated from 12 January 2011 with yearly rests, which is the date in which the insider dealing of China Forestry\u2019s shares took place via a share placement.<\/p>\n<p>The MMT further imposed the following orders against Mr. Li Han Chun and Mr. Li Kwok Cheong, the former chairman of China Forestry, due to the MMT\u2019s findings that they disclosed false or misleading information in China Forestry\u2019s IPO prospectus, annual results announcement and annual report for the year ended 31 December 2009 which induced transactions in China Forestry\u2019s shares:<\/p>\n<p>1) Disqualification orders for five (5) years (which prohibits them from being a director, liquidator, receiver or manager of the property or business of, or being concerned or taking part in the management of, any listed or unlisted corporation in Hong Kong, without leave of the court);<\/p>\n<p>2) Cold shoulder orders for five (5) years (which prohibits them from dealing in any securities, futures contract, leveraged foreign exchange contract or collective investment scheme in Hong Kong, without leave of the court); and<\/p>\n<p>3) Cease and desist orders which prohibit them from engaging in any conduct which constitutes market misconduct.<\/p>\n<p>The MMT also ordered Mr. Li Han Chun, Mr. Li Kwok Cheong and Top Wisdom to pay the costs and expenses incurred by the Hong Kong Government and the SFC.<\/p>\n<p><strong>Commentary<\/strong><\/p>\n<p>The size of the disgorgement order is significant, and the prohibition period for the disqualification order and the cold shoulder order both represent the maximum periods permitted under the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong).<\/p>\n<p>The severity of the orders imposed by the MMT against Mr. Li Han Chun, Mr. Li Kwok Cheong and Top Wisdom reflect the seriousness of the offences committed by them. This case serves as a useful reminder that the Hong Kong regulatory authorities would be willing to prosecute and impose harsh penalties on perpetrators of insider dealing and other market misconduct.<\/p>\n<p class=\"has-text-align-right\"><strong><em>Russell Bennett and John Lee<\/em><\/strong><\/p>\n<p>If you want to know more about the content of this article, please contact:<\/p>\n<p><a href=\"https:\/\/www.tannerdewitt.com\/our-people\/russell-bennett\/\">Russell Bennett<\/a><\/p>\n<p>Partner |\u00a0<a href=\"mailto:russellbennett@tannerdewitt.com\">Email<\/a><\/p>\n<p><em>Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication. This article was last updated<\/em>\u00a0<em>on 02 December 2024<\/em>.<\/p>\n<\/div>\n<\/div>\n\n\n\n\n<\/div>","protected":false},"excerpt":{"rendered":"<p>On 28 November 2024, the Securities and Futures Commission (\u201cSFC\u201d) announced that the Market Misconduct Tribunal (\u201cMMT\u201d) ordered: 1) Mr. Li Han Chun, the former chief executive officer of China Forestry Holdings Company Limited (\u201cChina Forestry\u201d), formerly listed on the Main Board of the Stock Exchange of Hong Kong (Stock Code: 930); and 2) his [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"tags":[],"insight-category":[1121],"insight-month":[1148],"insight-practice-area":[],"insight-year":[1159],"class_list":["post-29187","insight-and-news","type-insight-and-news","status-publish","hentry","insight-category-legal-updates-and-insights","insight-month-december","insight-year-1159"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tannerdewitt.com\/zh-hans\/wp-json\/wp\/v2\/insight-and-news\/29187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tannerdewitt.com\/zh-hans\/wp-json\/wp\/v2\/insight-and-news"}],"about":[{"href":"https:\/\/www.tannerdewitt.com\/zh-hans\/wp-json\/wp\/v2\/types\/insight-and-news"}],"author":[{"embeddable":true,"href":"https:\/\/www.tannerdewitt.com\/zh-hans\/wp-json\/wp\/v2\/users\/1"}],"version-history":[{"count":1,"href":"https:\/\/www.tannerdewitt.com\/zh-hans\/wp-json\/wp\/v2\/insight-and-news\/29187\/revisions"}],"predecessor-version":[{"id":30400,"href":"https:\/\/www.tannerdewitt.com\/zh-hans\/wp-json\/wp\/v2\/insight-and-news\/29187\/revisions\/30400"}],"wp:attachment":[{"href":"https:\/\/www.tannerdewitt.com\/zh-hans\/wp-json\/wp\/v2\/media?parent=29187"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tannerdewitt.com\/zh-hans\/wp-json\/wp\/v2\/tags?post=29187"},{"taxonomy":"insight-category","embeddable":true,"href":"https:\/\/www.tannerdewitt.com\/zh-hans\/wp-json\/wp\/v2\/insight-category?post=29187"},{"taxonomy":"insight-month","embeddable":true,"href":"https:\/\/www.tannerdewitt.com\/zh-hans\/wp-json\/wp\/v2\/insight-month?post=29187"},{"taxonomy":"insight-practice-area","embeddable":true,"href":"https:\/\/www.tannerdewitt.com\/zh-hans\/wp-json\/wp\/v2\/insight-practice-area?post=29187"},{"taxonomy":"insight-year","embeddable":true,"href":"https:\/\/www.tannerdewitt.com\/zh-hans\/wp-json\/wp\/v2\/insight-year?post=29187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}