The SFC has commenced Market Misconduct Tribunal hearing proceedings against
three senior executives of Chang Gaomei Group (08371.HK) and five relatives,
employees and close associates, alleging a plan to manipulate the company's
share price to satisfy Main Board transfer requirements. The regulator alleges
that between June 1 and Sept. 18, 2020, Huang, Chen and Yu instructed or
coordinated five others to trade Chang Gaomei shares to push and hold the price
at about HK$1.32 — the level needed, given issued share capital then, to meet
the HK$500m minimum market‑cap for a Main Board transfer. The stock rose from
HK$0.73 to HK$1.36 (c.86%) over the period; the SFC says the trading displayed
hallmarks of price manipulation, including aggressive buy orders near close and
orders capable of moving or determining the closing price.
