Two Hong Kong investment banks illegally sold in South Korea or have been recorded in

South Korea's Financial Supervision Bureau reports that the two -headed investment banks headquartered in Hong Kong are expected to be the highest fine ever for illegally selling stocks worth about 56 billion won.

The South Korean Economic Daily quoted people familiar with the matter and said that the two investment banks involved were HSBC Bank and the Bank of Paris, France.

According to reports, the South Korean Financial Supervision Bureau (FSS) issued a statement on Sunday (October 15), saying that two investment banks have "free -selling short -selling" behavior prohibited by the Korean Capital Market Law, that is,Selling short without borrowing assets, and illegal behavior lasts for a long time.

FSS also pointed out that this is the first time that the South Korean financial supervision agency has confirmed that the global investment banks have intentionally illegally sold their short selling. Most of the previous cases are hedge fund errors.

FSS refers to one of the investment banks from September 2021 to May last year, with a total of about 40 billion won (about S $ 40 million) for 101 stocks.It was discovered that the number of shares was repeatedly borrowed, thinking that its foreign investor customers were short -selling.

According to sources from the South Korean Economic Daily, the investment in the France, France, France.

FSS also said that another investment bank has sold nine stocks from August to December 2021, involving about 16 billion won.The short -selling instructions can be issued according to the number of stocks in the future, instead of being confirmed by confirmed the number of shares.It is reported that the investment bank is HSBC.

FSS predicts that the two banks will be given the highest fines since South Korea introduced the penalty of free -selling penalties.

It is reported that the biggest fine issued by South Korea so far is a 3.9 billion won of won in March in the Erste Asset Management GMBH company headquartered in Austria in March.From January to September this year, the FSS short -selling investigation department fined 30 won 10.7 billion won, of which 21 were foreign companies.

According to the Hong Kong Sing Tao Daily, FSS stated that it will cooperate with the Hong Kong Securities Regulatory Commission when necessary to jointly investigate such cases and promise to expand the scope of investigation to other global investment banks to find outWhether there is a similar transaction.