Hong Kong Fines George Soros For Short Selling

Fact checked by The People's Voice Community
Hong Kong fines George Soros for short selling scheme

George Soros has been fined by authorities in Hong Kong for naked short selling – the illegal practice of short selling shares that have not been affirmatively determined to exist. 

Hong Kong’s securities regulator fined Soros Fund Management HK$1.5 million ($192,000) for a 2015 trade involving a bonus share issue of Great Wall Motor Co.

Newsmax.com reports: “The SFC considers that SFM not only failed to act with due skill, care and diligence in dealing in the bonus shares, but also failed to diligently supervise its staff members and implement adequate and effective systems and controls to ensure compliance with the short selling requirements,” it said.

The Chinese automaker announced the bonus share issue in August 2015. Soros Fund Management’s local unit, known as SFM HK Management Ltd., was notified by its custodian that it was entitled to 1.6 million bonus shares as a result of already owning 808,000 Great Wall Motor shares.

The family office’s trade support team booked the 1.6 million shares to be allotted into its trading system without separating them into a restricted account, as required by internal policy. As a result, its system indicated it had 2.4 million Great Wall Motor shares available for trading when only a third of that was eligible for trading then, the SFC statement said.

The erroneous information led its portfolio managers to place an order to sell 2.4 million Great Wall Motor shares on Oct. 2, 2015, making it 1.6 million shares short.

The incident was the second over five years, yet there was no evidence that the firm acted in bad faith and it otherwise had a clean record, the SFC said. SFM HK has taken measures to enhance internal controls and systems, the SFC said.

Soros is no longer actively involved in the firm’s operations. Most of the firm’s assets under management now belong to his Open Society Foundations, after he transferred the bulk of his wealth there.

Sean Adl-Tabatabai
About Sean Adl-Tabatabai 17674 Articles
Having cut his teeth in the mainstream media, including stints at the BBC, Sean witnessed the corruption within the system and developed a burning desire to expose the secrets that protect the elite and allow them to continue waging war on humanity. Disturbed by the agenda of the elites and dissatisfied with the alternative media, Sean decided it was time to shake things up. Knight of Joseon (https://joseon.com)