The Securities and Futures Commission announced the ban on Yao Wei Cheng, the former responsible person of Chuangfu Asset Management (Hong Kong), from re-entering the industry for 15 years, deeming him not a suitable candidate for licensing.

The Securities and Futures Commission stated that the aforementioned disciplinary action stemmed from a previous decision by the Market Misconduct Tribunal, which determined that Yao Wei Cheng, as the former responsible person of Chuangfu Asset Management, had engaged in market misconduct by conducting false trades involving shares of Sinopharm Tech (08156.HK) and Quantum Think (08050.HK). He executed the relevant trades through a brokerage account managed by the hedge fund and his mother's brokerage account, resulting in a profit of 5.6 million yuan for his mother’s account, thus harming the interests of the hedge fund.

In making the decision on the disciplinary action, the Securities and Futures Commission took into account all relevant circumstances, including that Yao Wei Cheng engaged in manipulative actions for more than two months to provide illegal gains to his mother, which is considered serious and dishonest; he violated the trust and confidence placed in him by his clients; and there is a need to send a strong deterrent message to the market to prevent other practitioners from engaging in similar behavior in the future. (vc/u)

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