HK's SFC Fines China Merchants Securities Unit USD3.4 Million for Sponsor Failure
Jiang Yan
DATE:  May 29 2019
/ SOURCE:  yicai
HK's SFC Fines China Merchants Securities Unit USD3.4 Million for Sponsor Failure HK's SFC Fines China Merchants Securities Unit USD3.4 Million for Sponsor Failure

(Yicai Global) May 28 -- The Securities and Futures Commission of Hong Kong fined the local subsidiary of China Merchants Securities, one of China's leading brokers, HKD27 million (USD3.4 million) yesterday for failing to fulfill its duties as one of the joint sponsors of China Metal Recycling (Holdings).

China Metal fabricated financial data during its initial public offering in Hong Kong in 2009.

The SFC suspended the license of Wu Yinong, principal sponsor in charge of the supervision of China Metal's listing application for CMS, for 18 months on Feb. 27.

The SFC also rebuked another joint sponsor, investment banking giant UBS, including its Switzerland-based parent UBS and its UBS Securities Hong Kong unit, on March 14, since the broker failed to discharge its duties in three listing applications, including China Metal's, and handed down a HKD375 million (USD47.8 million) fine, the most it has ever imposed.

Listed on June 22, 2009, China Metal was compulsorily de-listed on Feb. 4, 2016 after the exchange discovered that it not only seriously exaggerated business revenue and profit in its application, but also continued to cook its books after listing.

Editors: Tang Shihua, Ben Armour

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Keywords:   The Securities and Futures Commission of Hong Kong,China Merchants Securities