The Hong Kong SFC has lost round one in the legal challenge to ban New York-based hedge fund, Tiger Asia Management LLC, from trading in the ci
The Hong Kong SFC has lost round one in the legal challenge to ban New York-based hedge fund, Tiger Asia Management LLC, from trading in the city. The market regulator alleges that parties in Bill Hwang’s fund (Bill Sung Kook Hwang, Raymond Park and William Tomita) contravened Hong Kong’s laws prohibiting insider dealing and market manipulation. But this week the Court of First Instance delivered its reasons for not ruling in favour of the SFC, stating that only a criminal court or the Market Misconduct Tribunal (MMT) has the jurisdiction to determine whether such activity as claimed by the SFC took place. Unsurprisingly, the SFC challenges the decision and intends to appeal. What’s more, it argues that because Tiger Asia is based in New York it does not fall within the jurisdiction of Hong Kong’s criminal courts. If proceedings were to commence before the MMT it would also entitle the three parties concerned to immunity from prosecution: again, not a welcome alternative in the SFC’s eyes. The allegations in the case against Tiger Asia relate to the trading of shares in China Construction Bank Corporation (CCB) and Bank of China Limited (BOC).