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
3 articles · Updated · Reuters · May 27
Summary
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.