The Hong Kong Securities and Futures Commission directed The Stock Exchange of Hong Kong Limited to suspend trading in Sichuan Baicha Baidao Industrial Co. shares from 9 a.m. on Oct. 13 and restricted dealings in up to HKD 4.66 billion of assets linked to two suspected IPO rigging syndicates. The regulator is investigating schemes involving the IPOs of Baicha, Cloudbreak Pharma and Tianju Dihe that may have created an artificial appearance of demand for shares and secretly channelled IPO proceeds back to major placees or connected parties. Restriction notices issued to six brokers cover up to HKD 4.38 billion held for nine entities linked to the suspected Baicha and Cloudbreak scheme. Notices to 29 brokers cover up to HKD 285 million held for three entities linked to the suspected Tianju Dihe scheme. Without the commission’s prior written consent, the brokers may not deal with the relevant assets or execute instructions from the named entities, and they must report any such instructions immediately. The brokers are not under investigation, and the restrictions do not affect their other clients. The investigation remains ongoing, and affected investors could receive compensation through a future restitution process.
Hong Kong Securities and Futures Commission suspends Baicha shares and restricts dealings in HKD 4.66 billion of assets over suspected IPO rigging
The Hong Kong Securities and Futures Commission suspended Baicha shares and restricted dealings in up to HKD 4.66 billion of assets linked to two suspected IPO rigging syndicates. The investigation covers alleged schemes involving the Baicha, Cloudbreak Pharma and Tianju Dihe IPOs that may have channelled proceeds back to major placees or connected parties.