The Securities & Futures Commission has issued a restriction notice on Wing Yip Co. Ltd. to preserve and protect the company's and clients' assets.

In line with the notice, the Stock Exchange of  Hong Kong today suspended the trading rights of Wing Yip until further notice.

The stockbroker is not allowed to operate any securities-related activities without the commission's prior written consent.

In an unsolicited inspection, the commission learned the stockbroker had misappropriated client securities and provided falsified statements to the clients concerned. There was a $4.3 million shortfall in the relevant securities account as of August 6.

It also found the stockbroker recorded a deficit in required liquid capital as at June 30, breaching the the Securities & Futures rules.

The commission said it will continue to look into the case to see what further regulatory actions may be required.

Wing Yip has about 280 active cash clients. For enquiries, please call the investor hotline at 2840 9333. Click here to see a FAQs list.