Retail Trader Sentenced for False Trading in Hong Kong

SFC HK Enforcement News

Filed February 12th, 2026

Detected March 18th, 2026

Summary

The Securities and Futures Commission (SFC) Hong Kong announced that a retail trader was sentenced to 220 hours of community service and fined $117,715 for false trading in six Hong Kong-listed companies. The SFC highlighted the importance of market integrity and investor confidence.

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What changed

The Securities and Futures Commission (SFC) Hong Kong has successfully prosecuted Mr Ng Ka Hei for false trading activities. Mr Ng was sentenced to 220 hours of community service, ordered to pay a fine equivalent to his illicit profits ($117,715), and reimburse the SFC's investigation costs ($199,669). The false trading involved "scaffolding" and wash trading in shares of six Hong Kong-listed companies between September 2022 and October 2024.

This enforcement action underscores the SFC's commitment to combating market misconduct and protecting investor confidence. Regulated entities and investors should be aware that the SFC is actively pursuing and prosecuting individuals engaged in fraudulent trading practices. While this specific case resulted in community service rather than immediate imprisonment, the Deputy Magistrate considered imposing jail time, indicating the seriousness with which such offenses are viewed. The SFC emphasizes that false trading undermines market integrity, and resolute action will be taken against such misconduct.

What to do next

Review internal controls for detecting and preventing wash trading and scaffolding activities.
Reinforce employee awareness of market manipulation regulations and consequences.
Ensure compliance with SFC regulations regarding trading practices and market integrity.

Penalties

Community service (220 hours), fine of $117,715, and payment of SFC investigation costs of $199,669.

Source document (simplified)

Retail trader sentenced in SFC’s false trading case

12 Feb 2026

The Eastern Magistrates’ Courts today sentenced Mr Ng Ka Hei to 220 hours of community service following his conviction of false trading in the shares of six Hong Kong-listed companies in a criminal prosecution brought by the Securities and Futures Commission (SFC) (Notes 1 to 3).

The Court also ordered Ng to pay a fine of $117,715, a sum equivalent to the total profit he made from his false trading activities, and to pay the SFC’s full investigation costs of $199,669.

Between 20 September 2022 and 24 October 2024, Ng made profits by selling shares at artificially high prices he created through “scaffolding” and wash trading. He placed and cancelled trading orders at increasing prices and traded between his various securities accounts as both buyer and seller.

In sentencing, Deputy Magistrate Mr Chu Chung Keung stressed the gravity of Ng’s offences, and the Court had considered imposing immediate imprisonment. However, after reviewing the probation officer’s suitability report, the Court decided to impose a community service order, with the expectation that Ng would appreciate the opportunity for rehabilitation.

The SFC’s Executive Director of Enforcement, Mr Michael Duignan, said: “False trading undermines investor confidence in the market. The SFC is committed to taking resolute action against such misconduct to protect market participants and uphold the integrity of Hong Kong’s securities markets.”

End

Notes:

The six companies were listed on the Main Board of The Stock Exchange of Hong Kong Limited.
False trading constitutes an offence contrary to section 295 of the Securities and Futures Ordinance.
Please see the SFC’s press release dated 22 January 2026.

Page last updated 12 Feb 2026