SFC obtains disqualification order against former financial controller of Anxin-China Holdings Limited

On March 11, 2025, the Securities and Futures Commission ("SFC") secured a court order disqualifying former financial controller of Anxin-China Holdings Limited (Anxin), Ms. Yang Shuyan, from acting as a director or manager for three years. She is also prohibited from managing any listed or unlisted corporation in Hong Kong without the court's permission.

Ms. Yang Shuyan's negligence in her role as Anxin’s financial controller was identified. She failed to discharge her duties with due care and diligence, and her oversight led to inaccuracies in the company’s financial position.

The SFC's investigation uncovered that Anxin overstated its cash position between 2011 and 2015, specifically by $1.26 billion in 2012 and $1.73 billion in 2013. False bank records were presented to auditors during the 2014 audit to conceal this overstatement.

Ms. Yang, responsible for overseeing audits and financial statements, did not take reasonable steps to detect the overstated cash position or verify discrepancies found by the special team. She also failed to raise concerns about the cash flow and bank records to the appointed independent forensic investigator.

The Court deemed Ms. Yang's negligence 'nothing short of breathtaking' and concluded that the scale of the irregularities could not have occurred without her gross negligence. The SFC's Executive Director of Enforcement, Mr. Christopher Wilson, emphasized the critical role of financial controllers in maintaining the integrity of financial reporting.

On June 24, 2021, the SFC obtained a court order disqualifying a former executive director of Anxin for eight years. The judgment dated February 25, 2025, is accessible on the Judiciary’s website (Case number: HCMP314/2020).

The page was last updated on March 11, 2025.