The Securities and Futures Commission (SFC) in Hong Kong has initiated legal action to secure a court order aimed at freezing assets amounting to $82.4 million, purportedly linked to a case of market manipulation involving shares of Smartac International Holdings Limited. This legal move is part of a larger investigation into allegations of stock price manipulation that occurred from October 31, 2018, to March 11, 2019.
The individuals targeted by this action include a former chairman and a non-executive director of Ding Yi Feng Holdings Group International Limited, along with 28 other suspects and a corporate entity. The intention behind the asset freeze is to safeguard funds designated for compensating investors who may have been adversely affected by the alleged market manipulation.
In conjunction with the asset freeze request, the SFC is pursuing various orders under Section 213 of the Securities and Futures Ordinance. These include measures to revert affected investors to their state before the manipulated transactions took place, as well as preventing the sale or transfer of assets belonging to the identified 14 defendants.
The initial hearing regarding this application was held recently, during which the court provided directives for the submission of evidence. Following this, the hearing has been postponed to October 24, 2025, allowing both parties time to prepare.
It is noteworthy that Ding Yi Feng Holdings Group International Limited has undergone a name change and is now known as Carmen Century Investment Limited, a transition that took effect on July 3, 2025. Meanwhile, Smartac, which was previously recognized as Smartac Group China Holdings Limited, has been delisted from the Main Board of the Stock Exchange of Hong Kong Limited since February 20, 2023.
The proceedings emphasize the SFC’s commitment to maintaining market integrity and protecting investors from deceptive practices. By seeking the asset freeze, the SFC aims to ensure that sufficient funds are available for any potential settlements or compensations that may arise as a result of the alleged misconduct.