Hong Kong Securities & Futures Commission has issued a restriction notice on Wing Yip Co. Ltd. on Monday to preserve and protect the company's and clients' assets.

In line with the notice, the Stock Exchange of Hong Kong on Monday suspended the trading rights of Wing Yip until further notice, according to a government press release.

In an unsolicited inspection, the commission learned the stockbroker had misappropriated client securities and provided falsified statements to the clients concerned.

There was a 4.3 million HK dollars (551,282 U.S. dollars) shortfall in the relevant securities account as of Aug. 6.

It also found the stockbroker recorded a deficit in required liquid capital as at June 30, breaching the Securities & Futures rules. Wing Yip Co. Ltd had about 280 active clients.

The commission said it will continue to look into the case to see what further regulatory actions may be required.

The stockbroker is not allowed to operate any securities-related activities without the commission's prior written consent.

It is the third case within two months that stockbrokers are found to have illegal acts in Hong Kong.

Source:Xinhua