Hong Kong Regulator Eyes Meitu's Rising Share Price After It Joins Shenzhen-HK Stock Market Connect
Yicai Global
/SOURCE : Yicai
Hong Kong Regulator Eyes Meitu's Rising Share Price After It Joins Shenzhen-HK Stock Market Connect

(Yicai Global) March 21 -- The Securities and Futures Commission of Hong Kong took notice of Meitu Inc. [HKG:1357], a social software producer, after its share price rose for several consecutive trading days following its inclusion in the Shenzhen-Hong Kong Stock Connect program at the beginning of the month.

The SFC and Hong Kong Exchanges and Clearing Ltd. have issued letters to some securities traders, asking for their transaction history, including information about customers involved in transactions of Meitu and SF Holdings Ltd. [SHE:002352], whose shares were traded through the Shenzhen-Hong Kong Stock Connect program, Hong Kong-based Wen Wei Po reported today.

Since Meitu went public, the SFC has asked for the company's transaction records at least three times, sources said. The first time was in January and the SFC asked for transaction history dating back to the first day the company listed.

The SFC rarely asks for transaction history from securities traders, even those using the Shenzhen-Hong Kong Stock Connect program. It is believed that the SFC and HKEx made their requests at the behest of the mainland.

After increasing 11 trading days in a row, Meitu's share price fluctuated yesterday. The intraday price rose sharply by 28 percent to HKD23.05 (USD2.97), but fell eliminating the day's gains near the market's close. Meitu closed at HKD15.98, down 11.22 percent.

Meitu listed in Hong Kong with an initial public offering price of HKD8.5 per share on Dec. 15. It was officially added to the Hang Seng Integrated Large and Medium Stock Index and listed on the Shenzhen-Hong Kong Stock Connect program on March 6. Since then, mainland funds have sought out stock in the firm. Although shares dropped yesterday, the stock was still up 88 percent from its IPO.

Shares today fell 8.64 percent to HKD14.60 today.

Follow Yicai Global on Facebook @yicaiglobal and Twitter @yicaichina.

Follow Yicai Global on