Hong Kong’s Securities and Futures Commission (SFC) has withdrawn the restriction notices prohibiting three brokers from disposing of or dealing with proceeds or assets in their client accounts linked to disclosure of false or misleading information in Hua Han Health Industry Holdings Limited’s financial statements.

The three brokers are: Changjiang Securities Brokerage (HK) Limited; Haitong International Securities Company Limited; and Kingston Securities Limited.

The restriction notices were issued to preserve assets held by two former top executives of Hua Han, Zhang Yue and Deng Jie, in accounts that their investment vehicle Bull’s-Eye Limited (BEL) maintained with the three brokers.

The SFC took the step after its investigation uncovered misappropriation of proceeds from the fundraising activities of Hua Han and discovered part of the misappropriated proceeds were deposited into BEL’s accounts with the brokers.

The withdrawal of the restriction notices was made after the successful prosecution by the Commercial Crime Bureau of the Police, following a referral by the SFC, against Hua Han’s former financial controller and company secretary for money laundering of the misappropriated proceeds. The withdrawal would enable the liquidators of BEL, which is currently under liquidation, to return the restricted assets to affected parties.

The three brokers are not subjects of the SFC’s investigation and the restriction notices did not affect their operations or their other clients.