SFC obtains worldwide freezing order against Lo Kai Bong and Major Success Group Limited

What Changed

• - The Court of First Instance has granted a worldwide freezing injunction over the assets of Mr Lo Kai Bong, prohibiting him from removing, disposing of, dealing with or diminishing the value of his assets up to HK$146,859,320.
• The Court has concurrently granted a worldwide Chabra injunction over the assets of Major Success Group Limited, a BVI company wholly owned and controlled by Mr Lo, on the basis that its assets may be beneficially owned or controlled by him and avail
• The injunctions apply to assets in Hong Kong and worldwide, significantly expanding enforcement risk beyond Hong Kong-situs assets for controlling shareholders and their offshore structures.
• The Court has ordered that both injunctions remain in effect at least until 26 August 2026, subject to further order, meaning the assets will be frozen through the lead-up to trial.
• The injunctions are explicitly tied to ongoing section 214 SFO proceedings seeking remedies for unfair prejudice and misconduct, including a share repurchase order for independent shareholders of LET and Summit Ascent and appointment of a receiver or
• The SFC is seeking appointment of a receiver and/or manager over LET and Summit Ascent to oversee the sale of particular land assets or subsidiary interests, with sale proceeds earmarked for funding the share repurchase.

Suggested Considerations

• Review and map all relationships with controlling shareholders, directors and their offshore vehicles to identify where client assets may be exposed to SFC-driven freezing orders or Chabra relief.
• Update internal litigation and regulatory investigations playbooks to explicitly cover section 214 SFO risks, including the potential for worldwide asset-freezing and receiver appointments even after an issuer is delisted.
• Implement enhanced due diligence on beneficial ownership and control structures, particularly BVI and other offshore vehicles used by controlling shareholders of Hong Kong-listed and recently delisted issuers.
• For banks, broker dealers and custodians, review current accounts, credit exposures, collateral and custody arrangements for clients who are directors, controlling shareholders or their vehicles in Hong Kong issuers, and identify those at heightened risk of SFC enforcement.
• Enhance early-warning triggers in compliance monitoring to escalate promptly when the SFC announces section 214 SFO proceedings or issues press releases suggesting asset preservation measures may be sought.
• For issuers, ensure that the board and audit committee receive a briefing on section 214 SFO powers, including potential remedies such as disqualification, share repurchase orders, compensation orders and appointment of receivers or managers, and incorporate these into the risk register.

Key Dates

Who is Affected