* Tribunal orders Left to repay HK$1.6 million
* Grants "cease and desist" order on some activities
* Left says he plans to appeal
(Adds Left's reaction to the ban)
By Michelle Price
HONG KONG, Oct 19 A Hong Kong tribunal banned
Andrew Left, founder of U.S.-based short-seller Citron Research,
for five years from the Hong Kong market in a landmark ruling
against market manipulation in Asia's financial capital.
Left said he planned to appeal the decision.
The Tribunal found Left culpable of market misconduct in
connection with the publication of a research report on Hong
Kong-listed Chinese property developer China Evergrande Group
In a ruling on Wednesday, the tribunal also ordered Left to
repay HK$1.6 million ($206,249) of profits made while shorting
The decision is expected to send a strong message that Hong
Kong regulators will be tough on any form of market
manipulation, which could potentially curb traders' and
analysts' ability to criticise publicly traded companies.
The so-called "cold shoulder" ruling by Hong Kong's Market
Misconduct Tribunal (MMT) followed an August verdict that said
Citron engaged in market manipulation by spreading false or
"Having regard to what it considers to be the profound
mischief this type of activity can cause, the tribunal is
unanimously of the view in this particular instance that this
cold shoulder order be for the maximum period of time," Michael
Hartmann, chairman of the tribunal, said.
In an email to Reuters, Left said: "I do not believe the
decision properly reflected the case, I did an extensive amount
of research and am disappointed that the courts have stifled my
freedom of speech.
"A definite step backwards for efficient markets," he said
in the email. "Yes, I plan on appealing."
Typically such appeals can be made on the basis the law was
misapplied, or there was an error of fact.
The tribunal also granted a "cease and desist" order against
Left with respect to some activities, which puts Left on notice
that if he breaks Hong Kong securities rules again the
transgression will be treated as a criminal matter rather than a
civil matter as this case is.
Hong Kong's Securities and Futures Commission (SFC) alleged
in December 2014 that Left profited after publication of the
research report knocked nearly 20 percent off Evergrande's share
price. The report claimed that the developer was insolvent and
had engaged in fraud.
The tribunal has yet to determine the costs Andrew must pay
but the SFC is seeking HK$3.966 million for its expenses, in
addition to government costs.
(Reporting by Michelle Price; Editing by Lisa Jucca and Susan