SEC Suspends Trading in Foreign Issuer; Cites Social Media Manipulation

The Securities and Exchange Commission temporarily suspended trading in the securities of a British Virgin Islands-incorporated holding company due to potential market manipulation.

In the Order, the SEC stated that the suspension—issued pursuant to SEA Section 12(k) ("Registration requirements for securities")—was necessary due to concerns regarding potential market manipulation. The SEC said that the Hong Kong-headquartered issuer was the subject of recommendations made by unknown persons via social media. The SEC said these recommendations to purchase, hold, or sell the securities "appear[ed] designed to artificially inflate [the company's stock] price and trading volume."

The Commission cautioned broker-dealers, shareholders, and prospective purchasers to carefully consider this information alongside other available data on the company. The SEC further requested that any broker-dealer or other person with information relating to the matter immediately contact the Commission’s Home Office.