SFC publicly censures Zhang Qiang for breach of the Takeovers Code

20 Dec 2017

The Securities and Futures Commission (SFC) has publicly censured Zhang Qiang for acquiring shares within six months after the close of an offer at above the offer price in breach of Rule 31.3 of the Takeovers Code (Note 1).

On 24 May 2017, Zhang made an unconditional mandatory general offer in cash for the shares of Feishang Non-metal Materials Technology Limited at $0.70 per share. The offer closed on 14 June 2017. On 25 July 2017, Zhang made a series of on-market acquisitions of a total of 2,000,000 shares at prices ranging from $1.47 to $1.50 per share.

Zhang submitted that the breach was not intentional. He has accepted that he breached Rule 31.3 and agreed to the current disciplinary action taken against him.

A copy of the Executive Statement can be found in the "Listings & takeovers – Takeovers and Mergers – Decisions & statements – Executive decisions and statements" section of the SFC website.



  1. Rule 31.3 of the Takeovers Code prohibits an offeror and its concert parties from buying shares at prices higher than the offer price within six months after the end of the offer period except with the consent of the Takeovers Executive (ie, the Executive Director of the SFC’s Corporate Finance Division or his delegate).

Page last updated : 20 Dec 2017