Top executives and directors of property developers in Hong Kong, along with their real estate agents, could face up to 10 years in prison for false trading and price manipulation, according to a report by The Standard.
However, the report said that representatives of property developer companies were not ruffled by the proposed measures.
Lee Wing-tat of HK’s Democratic Party said the proposed law could be controversial, as top-ranking officials of property companies would be facing criminal liability for the first time.
In October last year, the Hong Kong government created a 14-member committee to study how the city-state can control the sale of new private homes. Members of the committee were told to tackle matters like new flats, price lists, sales practices, enforcement mechanisms and penalties for rogue officials.
After nine months of meetings, the committee is in its final stage and is now discussing suitable penalties for violators.
Committee Chairman Duncan Pescod, who is the Permanent Secretary for Transport and Housing, has accepted the proposal for harsher penalties, with a maximum penalty of 10 years in prison and a fine of HK$10 million.
Victor Wai Chi-kin, an accountant and a member of Professional Commons, said the measures to combat irregularities in the stock markets can be used to curb the property market.
“Hong Kong is a small but crowded place,” said Mr. Wai. “If someone deliberately releases false information it could manipulate the property market or control prices.”
“If the public is protected when buying shares, then why not those buying property, which is a form of investment for many people?”
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