China’s Sichuan Baicha Baidao Industrial on Wednesday noted the Hong Kong securities regulator’s decision to suspend trading over concerns its initial public offering demand may have been rigged.
The Securities and Futures Commission directed the Stock Exchange of Hong Kong on Tuesday to suspend the Chinese tea shop chain’s H shares, citing “serious concerns” about artificial demand for the IPO.
“We are acting decisively to protect investors and uphold the integrity of Hong Kong‘s markets,” SFC Executive Director of Enforcement Michael Duignan said.
The company, which raised about $330 million in its 2024 Hong Kong debut, said it is seeking legal advice and will work to address and resolve the SFC’s concerns.
It said that business operations remain normal as of October 14.
IPOs and other share sales have become a key regulatory focus this year, with banks and advisers urged to “consider market capacity and choose quality issuers while exercising robust internal control,” according to two sources who spoke to Reuters in September.
The sources added that Hong Kong‘s securities watchdog has also guided investment banks on how to cooperate during regulatory raids.
Reuters
