Reporting listed company fraud and market misconduct

Important – please read

This webpage is only for reporting information about suspected listed company fraud such as accounting fraud, listed company directors’ conflicts of interest and failure to disclose price sensitive information, suspected insider dealing, stock market manipulation and other market misconduct.

To make a report to the "Report Misconduct Section" of the SFC, please use the online Reporting Form here.

All reports made to our Report Misconduct Section will NOT be treated as complaints, accordingly, we may not respond to every report. You will only be contacted if we need further information.

If you wish to lodge a complaint against a person, company, including an SFC-licensed intermediary, or corporate actions of a Hong Kong listed company, please refer to the "Lodge a complaint" section1 on the SFC's website.

Reporting listed company fraud and market misconduct

Listed company fraud and market misconduct threaten the integrity of our markets and undermine investor confidence. Tackling these threats is our top regulatory priority.

You can help protect Hong Kong markets by informing the SFC of your knowledge or suspicion of accounting fraud, listed company directors’ conflicts of interest and price sensitive information disclosure failures or market misconduct. Credible, timely and actionable intelligence from industry professionals and market participants can help to stop listed company fraud and market misconduct in their tracks, prevent investors from harm and promote fair and efficient markets.

This section provides important guidance on how to make an effective report to the SFC.

What should I report?

The following is a list of activities which may be reported through this webpage. Because of their insidious nature, these violations are often difficult to detect and are time consuming to investigate. To tackle these threats efficiently, the SFC appreciates credible, timely and actionable intelligence about the following activities:

  • Listed company fraud or misconduct (examples)
  • Insider dealing (examples)
  • False trading (examples)
  • Stock market manipulation
  • Price rigging (examples)
  • Disclosure of false or misleading information inducing transactions

How do I report?

If you suspect a listed company or person has engaged in corporate fraud or market misconduct, you can make a report to us by completing an online Reporting Form.

Reports may be made anonymously.

What information do I need to provide?

  • Full names of the listed companies or persons involved
  • Full details of the reported listed company fraud or market misconduct
  • Supporting documents which may help us assess your report
    Note: Please attach scanned copies of all relevant documents in JPEG or PDF format.
  • Details of previous reports you have made, if applicable
  • Your full name and contact details (optional)

You should clearly set out the allegations and the specifics of what happened, and provide documents to substantiate the allegations. 

Can I make a report anonymously?

While information can be disclosed anonymously, we encourage you to provide your name and contact information so that we may contact you to follow up. In our experience, many reports submitted without identity or contact information often cannot be pursued because they do not include sufficient actionable information.

Will I receive a response from the SFC?

We may not reply to or contact the informer in respect of every submission. We will contact you if we need further information. If you would like to submit additional information, please do so using the Reporting Form.   

How does the SFC handle my report?

Confidentiality
Information provided in your report is used for the purposes stated in the Important Legal Information section of the SFC’s website and the SFC’s Privacy Policy Statement. Your personal data will not be used for any other purposes without your consent, unless such use is permitted or required by law.

Secrecy provision
We cannot always tell you what we have discovered because we are restrained by law from disclosing information obtained during the performance of our regulatory functions. The only exception is when an action stemming from an investigation, such as a prosecution or a disciplinary proceeding, is concluded. Then such information will be made public, generally by way of a press release.

Release of information
In reviewing your report, the SFC may need to contact the target company or person or another authority (eg, The Stock Exchange of Hong Kong Limited) in order to collect further information, and details of your report may have to be disclosed to these parties for these purposes. In that event, you will be contacted beforehand to authorise the SFC to release information provided in your report if you provided your contact details.

However, where you disclose information to the SFC, and notwithstanding the SFC's policy that wherever possible, your identity should be kept confidential, if the information is held or used for certain purposes related to law enforcement and regulation, the SFC is exempt from the application of data protection principles 3 and 6 (use of personal data and access to personal data) by section 58 of the Personal Data (Privacy) Ordinance. The information can then be used for these purposes, whether or not you give authorisation. The purposes include the prevention, preclusion or remedying (including punishment) of unlawful or seriously improper conduct, and protecting the public from financial loss arising from dishonesty, incompetence, malpractice or seriously improper conduct by persons concerned in the provision of financial services..

 1 Lodge a complaint – Against intermediaries and market activities section.

  • Misleading financial statements
  • Breach of duties by directors and senior executives of listed companies
  • Failure to disclose price-sensitive information
  • The lawyer representing the Chairman of a company in potential accounting fraud proceedings sells the company's shares before the proceedings are announced
  • A director in charge of negotiating a merger buys the company's shares before the news goes public
  • The Chief Financial Officer discovers that the company has severe financial problems and tells his friend to sell her shares before an announcement is made
  • Conducting matched trades and wash trades (buying and selling the same stock simultaneously) to inflate trading volume
  • Operating one's own accounts as well as controlled accounts through which one buys and sells shares in transactions that involve no change in beneficial ownership
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