The Hong Kong Securities and Futures Commission (SFC) directed The Stock Exchange of Hong Kong Limited to suspend dealings in the shares of Dashan Education Holdings Limited under the Securities and Futures (Stock Market Listing) Rules, effective from 9:00 am on 3 December 2025. The SFC cited the need to maintain a fair and orderly market and protect investors while it continues its investigation. The action follows the SFC’s inquiry into payments linked to Dashan’s software development project and a UK acquisition, which uncovered discrepancies between bank statements provided by Dashan and those obtained independently, including omitted circular fund flows returning to Dashan. The SFC also identified material overstatements of bank balances in Dashan’s financial statements totalling RMB36.4 million as of 30 June 2023 and RMB76.3 million as of 31 December 2023, representing 19% and 55% of the company’s stated net asset value. Based on these findings, the SFC suspects the transactions were not genuine or arm’s length, fabricated bank statements were submitted to conceal questionable fund flows, and Dashan’s published accounts significantly overstated corporate bank balances, raising concerns about management integrity, internal controls and market disclosure, including whether the 2 September 2024 trading resumption was based on false or misleading information.

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