Hong Kong Securities and Futures Commission: Film producer Wong Suk Ming sentenced to imprisonment and fine in insider trading prosecution.

On June 9th, the Securities and Futures Commission of Hong Kong announced that well-known film producer Wong Pak Ming, after being convicted of insider trading involving Tianma Film and TV Cultural Holdings Limited in a criminal prosecution earlier, was sentenced to five months' imprisonment by the West Kowloon Magistrates' Court today. Wong was convicted after a 16-day trial for deliberately using insider information obtained in his capacity as chairman and major shareholder of Tianma Film and TV, and providing advice to his sister through WhatsApp messages on the timing and price of trading the company's shares before the information was disclosed to the market. Wong was ordered to pay a fine of HK$99,720, equal to the profits realized by his sister from trading Tianma Film and TV shares. He was also ordered to pay the SFC's investigation costs of HK$374,305.48. The case revealed that in 2017, Wong received non-public price sensitive information while discussing the sale of his shares in Tianma Film and TV. On August 25, 2017, after receiving earnest money from the buyer, Wong started transferring funds to his sister, who then began purchasing shares in Tianma Film and TV on the same day, until October 17, 2017. As a result, Wong's sister bought over 9 million shares of Tianma Film and TV at prices significantly lower than the market price after the information was made public on October 25, 2017, with funds mainly coming from Wong's transfers. Eddie Cheung, Executive Director of Enforcement at the SFC, said upon learning of Wong's sentence: "This case highlights the serious consequences of abusing insider information for personal gain. The prison sentence imposed by the court fully demonstrates that insider trading can lead to immediate imprisonment. The outcome of this case sends a clear message to the public: individuals who use insider information for personal gain, regardless of their status or reputation, must bear serious consequences and be held accountable publicly." The SFC will continue to take strict enforcement action to combat insider trading, to protect investors and maintain confidence in Hong Kong's financial markets. The court granted Wong bail pending appeal, subject to conditions including paying a bail of HK$200,000, residing at the provided address and notifying the police of any changes in residence, and notifying the SFC 24 hours prior to leaving the territory.