The former securities trader, Wong Chun, cannot re-enter the industry for eight years following his conviction and sentencing for false trading in the shares of Sino-Tech International Holdings Ltd.
Between December 2010 and January 2011, as a dealer with Ping An of China Securities (Hong Kong), Wong created a false or misleading appearance of active trading in shares of Sino-Tech, the regulator said in a statement.
Using matched trades and some wash trades between his own account and the accounts of two other investors, he was able to grossly inflate trading volume by more than 400%, the SFC said.
As a result, the securities accounts controlled by Wong were able to offload more than 200 million shares, making a gross profit of more than HK$2m ($258,000).
Earlier this year, Wong was convicted and sentenced to 200 hours of social work.
HSBC Private Bank hearing
Last week the SFC said it set a date in May 2016 to hear HSBC’s application for a review of disciplinary action against it related to Lehman Briothers-linked instruments.
“The SFC’s disciplinary decision against HSBC Private Bank concerns the bank’s internal controls and sales practices in connection with its sale of structured products – namely, Lehman Brothers-related notes and leveraged forward accumulators between 2003 and 2008,” the regulator said.