• On 25 March 2020, the Market Misconduct Tribunal (“MMT”) found Magic Holdings International Limited (“Magic”) and certain of its directors culpable of late disclosure of inside information. As confidentiality had been lost, Magic was unable to rely on any of the “safe harbour” exceptions to disclosure found in the section 307(D) of the SFO.
• In recent weeks, the spread of Coronavirus has created great uncertainty about many listed companies’ future performance and viability (resulting in extreme share price volatility) and the MMT’s decision is a timely reminder to companies listed on the Hong Kong Stock Exchange to ensure that inside information is disclosed promptly.
• In this bulletin, we look at the MMT’s findings and consider some practical steps that can be taken to avoid late disclosure of inside information.

Debevoise & Plimpton’s Hong Kong contentious regulatory team has extensive experience advising listed companies and directors on complex situations requiring the disclosure of inside information as well as defending listed companies and directors in regulatory enquiries and proceedings.