Hong Kong SFC Raids 2 Chinese Brokerages Over Share Offerings as IPO Proceeds Hit HK$109.9 Billion
Updated
Updated · Reuters · May 27
Hong Kong SFC Raids 2 Chinese Brokerages Over Share Offerings as IPO Proceeds Hit HK$109.9 Billion
6 articles · Updated · Reuters · May 27
SFC officials searched the Hong Kong offices of CCB International and China Securities International, seizing documents and electronic devices in a probe into suspected misconduct tied to share offerings.
The raids extend Hong Kong's tougher policing of listing work as an IPO boom strains banks' due-diligence and underwriting practices; authorities have not disclosed which deals are under scrutiny.
In March, the watchdog raided at least two Chinese brokerages and a hedge fund and arrested eight people after earlier flagging "serious deficiencies" in listing applications and halting some filings.
Hong Kong raised HK$109.9 billion, or $14.03 billion, through IPOs in the first quarter, underscoring why regulators are tightening oversight in the world's top new-share market.
Will Hong Kong's aggressive IPO crackdown scare away future listings and threaten its global ranking?
Which major IPOs are at the center of the investigation, and how deep does the misconduct run?