Ying Kit Stock Company (Ying Kit) defaulted in its payment obligation to Hong Kong Securities Clearing Company Limited (HKSCC), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), today (23 January). This constitutes a default under Rule 3701 of General Rules of CCASS. Pursuant to Rule 3702, Ying Kit has been declared a defaulter by HKSCC. Subsequent to the HKSCC declaration on Ying Kit, pursuant to Rule 725 of Rules of the Exchange, Ying Kit is not allowed to trade on the Stock Exchange with immediate effect.

HKSCC has proceeded with its default procedures to effect closing-out of the unsettled Continuous Net Settlement stock positions of Ying Kit and has effected buy-in to settle its outstanding stock positions in CCASS.

HKEx and HKSCC have also been informed that the Securities and Futures Commission will issue a Restriction Notice to Ying Kit under Sections 39 and 40 of the Securities and Futures Commission Ordinance.

Ying Kit suspended trading voluntarily on 22 January.