The Hong Kong Securities Regulatory Commission withdraws restrictions on three brokerage firms. The restricted assets in the Huahan Health case will be returned

The Zhitong Finance App learned that on December 29, the Hong Kong Securities Regulatory Commission has withdrawn the restrictions issued to the three brokerage firms, which prohibits them from disposing of or handling funds or assets in specific customer accounts. These accounts all involved the disclosure of false or misleading information in financial statements by Huahan Health Industry Holdings Co., Ltd. (Huahan). The three brokerage firms mentioned above are: Changjiang Securities Brokerage (Hong Kong) Limited, Haitong International Securities Limited and Kingston Securities Limited.

Bull's-eye Limited (BEL), an investment company under the names of Zhang Yue (male) and Deng Jie (male), two former senior employees of Huahan, opened accounts with these three brokerage firms, and the relevant restriction notice was intended to preserve the assets held by the two in such accounts.

After investigation, the Hong Kong Securities Regulatory Commission revealed that the proceeds from Huahan's fund-raising activities had been misappropriated, and discovered that some of the money had been deposited into the account set up by BEL with the brokerage firm mentioned above, so it took relevant action.

The Hong Kong Securities Regulatory Commission also referred the case to the Police Commercial Crime Investigation Division for follow-up. Earlier, the police successfully prosecuted Hua Han's former financial director and company secretary for money laundering where proceeds were misappropriated. In view of this, the Hong Kong Securities Regulatory Commission has withdrawn these restraining notices so that the liquidators of BEL (currently in liquidation) can return the restricted assets to the affected persons.

The above three brokerage firms are not subject to investigation by the Hong Kong Securities Regulatory Commission, and these restrictions do not affect their operations or their other clients.