HONGKONGSPECIALADMINISTRATIVEREGION..docVIP

HCMP 1407/2007 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF FIRST INSTANCE MISCELLANEOUS PROCEEDINGS NO. 1407 OF 2007 ____________ IN THE MATTER of JUN DU (previously “A”) and IN THE MATTER of the Securities and Futures Ordinance (Cap. 571) ____________ BETWEEN SECURITIES AND FUTURES COMMISSION Plaintiff and JUN DU (previously “A”) Defendant ____________ Before: Hon Kwan J in Chambers Date of Hearing: 23 December 2008 Date of Decision: 23 December 2008 _____________ D E C I S I O N _____________ The application On 27 July 2007, the Securities and Futures Commission (the “SFC”) obtained an ex parte interim injunction against the defendant under section 213(6) of the Securities and Futures Ordinance, Cap. 571, restraining him from disposing of or transferring out of the jurisdiction his assets up to a value of HK$46,595,011.00. The amount under restraint was calculated on the basis that in the event a financial penalty is imposed in relation to a disciplinary action brought by the SFC under section 194, the likely penalty would be two times the notional profit in respect of the defendant’s 26.7爉illion shares in CITIC Resources Holdings Ltd ( “CITIC Resources”). The defendant was suspected to have engaged in insider dealing in respect of those shares. The ex parte order was continued pending the determination of the inter partes summons for its continuation and the defendant’s cross application for its discharge or variation. On 29 November 2007, I handed down my decision refusing the defendant’s application and ordered that the ex parte injunction be continued until further order of the court (Securities and Futures Commission v A [2008] 1 HKC 89). Today’s application is the second time the defendant has applied to discharge or vary the injunction. He did so on the basis there are material changes of circumstances since the dismissal of his first application in November last year. Under section 213(9), the cour