China’s top financial regulator is investigating Hong Kong-listed brokerage GF Securities for the inadequate review of a shares issuance, amid the country’s full embrace of a market-oriented initial public offering (IPO) system, reports the South China Morning Post. The China Securities Regulatory Commission (CSRC) has filed a case against GF Securities for suspected unlawful acts, the mainland Chinese brokerage said in a stock exchange filing on Monday.
It “failed to exercise due diligence in respect of sponsorship of the non-public issuance of shares by Misho Ecology & Landscape Co” in 2018 and is, therefore, suspected to be in “breach of laws,” the brokerage said in a Chinese language statement late on Monday, referring to the case filed by the CSRC.
“[GF Securities] will actively cooperate with the CSRC’s investigation efforts and perform its obligation of information disclosure in strict accordance with regulatory requirements,” the brokerage said, advising investors to invest rationally and pay attention to investment risks. “Currently, the operation of the company is normal.”
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