The Securities and Futures Commission (SFC) has issued a restriction notice to China International Capital Corporation Hong Kong Securities Limited (CICC), prohibiting it from dealing with or processing certain assets held in a client account which is related to suspected insider dealing.

The SFC notes that it is not investigating CICC. The restriction notice does not affect CICC’s operations or its other clients.

The restriction notice prohibits CICC, without the SFC’s prior written consent, from disposing of or dealing with, or assisting, counselling or procuring another person to dispose of or deal with, any assets in any way in the account up to a certain amount, including:

• (i) entering into transactions in respect of any securities;
• (ii) processing any withdrawals or transfers of securities and/or cash on the instructions of any authorized person of the account or by any person acting on their behalf;
• (iii) disposing of or dealing with any securities and/or cash on the instructions of any authorized person of the account or by any person acting on their behalf; and/or
• (iv) assisting another person to dispose of any relevant property or deal with any relevant property in a specified manner.

CICC is also required to notify the SFC immediately if it receives any of these instructions.

The regulatory investigation is ongoing.