..."The present case evinces that the SFC is widening its net and could go after people who are not insiders by using other provisions of the Securities and Futures Ordinance (SFO) relating to market misconduct," said Mohan Datwani, a solicitor and director of technical standards at the Hong Kong Institute of Chartered Secretaries (HKICS).
Increased risk
"The decision definitely enhances the risks for analysts. It just adds to the pressure, especially when you consider that some analysts are already under institutional pressure not to publish negative reports," said Abdulali Jiwaji, a partner at Signature Litigation in London. "One wonders whether regulators would look so closely if an analyst report including a buy recommendation caused an upsurge in the share price of a company," he said."