On 19 August 2026, the Honourable Mr Justice Coleman of the Court of First Instance heard a judicial review challenge brought by China Evergrande Group (In Liquidation) (“CEG“) against the Securities and Futures Commission (“SFC“). The challenge concerns an agreement between the SFC and PricewaterhouseCoopers Hong Kong (“PwC HK“), under which PwC HK agreed to set aside HK$1 billion to compensate eligible independent minority shareholders of CEG (“Settlement Agreement“).

The Court’s decision is expected to provide important guidance on the scope of the SFC’s power to resolve contemplated enforcement action through voluntary agreements outside of disciplinary matters.

This update outlines the key submissions made by the parties at the hearing.

Please see our article for more details.