Kok Ding Cheng

Background

Kok Ding Cheng, an experienced retail investor, made five small orders for of NZX-listed shares of Rua Bioscience Limited (RUA) over a 10-day period during late 2020 via a broking account he held with ASB Securities.  

A civil court proceeding brought by the FMA found in making each of those five orders, which ranged from $59 to $540, Mr Cheng breached s265 of the Financial Markets Conduct Act 2013 which prohibits trade-based market manipulation.  The Court found that Mr Cheng deliberately placed the orders for the purpose of increasing the price and/or demand for Rua shares.

Mr Cheng did not file a statement of defence during the proceeding, and so the proceeding progressed by way of formal proof hearing.  

Kok Ding Cheng was ordered to pay the Crown a pecuniary penalty of $198,000.  

Timeline

Kok Ding Cheng, an experienced retail investor, has been ordered to pay the Crown a pecuniary penalty of $198,000, following a civil proceeding brought by the Financial Markets Authority (FMA) – Te Mana Tatai Hokohoko for market manipulation.  

• Related media release: Experienced retail investor found liable for market manipulation