Hong Kong Case Law: Decisions & Judgments

Topic

Margin accounts

Legal area

Court

19 Apr 2023

FUNG YIM v. CHINA INDUSTRIAL SECURITIES INTERNATIONAL BROKERAGE LTD

Citation

[2023] HKCFI 957
Court

Court of First Instance
Case number

HCA944/2021

The court found contemporaneous documentary and recorded evidence materially contradicted the plaintiff's pleaded case of no knowledge and no authorization, rendering the defence largely incredible; however unexplained delay by the defendant in enforcing margin requirements and absence of certain witness explanation prevented outright summary judgment or striking out. Accordingly the court granted conditional leave to defend on stringent terms (payment into court of HK$15,000,000 within 30 days) failing which defendant may enter judgment and strike out the claim.
15 Feb 2017

WONG MAN HON FREDERICK v. CHINA TIMES SECURITIES LTD

Citation

WONG MAN HON FREDERICK v. CHINA TIMES SECURITIES LTD
Court

Court of First Instance
Case number

HCA2715/2016

On the proper construction of the CAA and the account opening and supplemental margin agreements, transfer of the Shares to an authorised custodian did not constitute a breach; the plaintiff had not exercised his equity of redemption and therefore had no present entitlement justifying injunctive relief; there was no credible evidence that the Shares had been sold; damages were an adequate remedy; accordingly the undertaking/injunction was discharged and the inter partes relief dismissed with costs to the defendant.
6 Jan 2009

STRONG OFFER INVESTMENT LTD v. NYEU TING CHUANG

Citation

STRONG OFFER INVESTMENT LTD v. NYEU TING CHUANG
Court

Court of Final Appeal
Case number

FACV21/2006

The court held that, on the available evidence, the judge was entitled to accept the plaintiff's calculations and reduce the judgment debt by HKD 1,640,311.96, entering judgment for HKD 39,580,257.88; simple interest applies and the defendant must pay the plaintiff's costs of the hearing before the judge to be taxed if not agreed.
1 Dec 2005

RE KEE FUNG SING INTERNATIONAL FINANCE COMPANY LIMITED (in Liquidaton)

Citation

RE KEE FUNG SING INTERNATIONAL FINANCE COMPANY LIMITED (in Liquidaton)
Court

Court of First Instance
Case number

HCCW365/1998

Directions granted: net claims are to be assessed by deducting shares returned from original holdings and valuing the remainder at the closing price on the date of the winding-up orders (7 July 1998); proofs in respect of margin accounts maintained in the name of KFS must be submitted by KFS on behalf of itself and its clients; specified unclaimed proceeds are to be paid into court with advertisement and a three‑month claim period then transferred to general revenue; the liquidators may apply specified unallocatable proceeds (HKD 506,920) to meet the shortfall in fees and costs; costs of the…
1 Dec 2005

RE CHARK FUNG SECURITIES CO LTD

Citation

RE CHARK FUNG SECURITIES CO LTD
Court

Court of First Instance
Case number

HCCW362/1998

The court directed that returned shares be accounted for on a proprietary basis by deducting the number of shares returned from the client's original holding and valuing the net claim by reference to the closing price as at the date of the winding-up orders (7 July 1998); proofs in respect of margin accounts maintained in KFS' name must be submitted by KFS on behalf of itself and its clients; unclaimed proceeds are to be paid into court under Trustee Ordinance s62, advertised once in English and Chinese and held for three months before transfer to general revenue; and the liquidators may appl…
14 Nov 2003

EVER-LONG SECURITIES CO LTD v. WONG SIO PO

Citation

EVER-LONG SECURITIES CO LTD v. WONG SIO PO
Court

Court of Appeal
Case number

CACV99/2003

The Court held that the plaintiff had established a prima facie contract and sufficient evidence that transactions were authorised via the intermediary (Mr Pang) and that the defendant had actual or constructive knowledge (receiving daily statements). Alleged regulatory breaches and non‑compliance with the SFC Code or Part XA did not render the contract illegal because Part XA did not apply to the activities in issue by virtue of Schedule 4; hearsay statements by the defendant were admissible and not prejudicial; allegations of fraud were unpleaded and unsupported. Therefore there was no meri…

Hong Kong Case Law

FUNG YIM v. CHINA INDUSTRIAL SECURITIES INTERNATIONAL BROKERAGE LTD

WONG MAN HON FREDERICK v. CHINA TIMES SECURITIES LTD

STRONG OFFER INVESTMENT LTD v. NYEU TING CHUANG

RE KEE FUNG SING INTERNATIONAL FINANCE COMPANY LIMITED (in Liquidaton)

RE CHARK FUNG SECURITIES CO LTD

EVER-LONG SECURITIES CO LTD v. WONG SIO PO