Clifford Chance
Hong Kong Court of Appeal finds that the Court of First Instance has jurisdiction to make final orders against an offshore hedge fund
24 February 2012
In a unanimous ruling delivered on 23 February 2012, Hong Kong's Court of Appeal (CA) has upheld an appeal by Hong Kong's securities regulator, the Securities and Futures Commission (SFC), holding that the High Court of Hong Kong (Court of First Instance)(CFI) has jurisdiction to make final freezing orders against the assets of Tiger Asia Management LLC (Tiger Asia), (worth approximately HK$38.5 million), an offshore New York based hedge fund, alleged by the SFC to have engaged in insider dealing and false trading.
Tiger Asia has indicated that it will appeal the CA's ruling against the hedge fund to Hong Kong's highest court, the Court of Final Appeal.
The SFC has, on the other hand, stated that the CA's judgment has vindicated the SFC's enforcement action being taken against Tiger Asia and similar institutions, such as proceedings being taken against Hontex International Holdings Co and former executives of China Forestry Holdings Ltd and Gome Electrical Appliances Ltd. The SFC plans to return to the High Court as early as possible to ask the High Court to determine if the final freezing orders it seeks against Tiger Asia for alleged insider dealing can be granted.
