3/14/2019, 12:18 PM (Source: TeleTrader)
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Hong Kong regulator fines banks over Chinese IPOs

Hong Kong's securities regulator imposed its heftiest-ever fine on a number of international banks over their involvement in various Chinese initial public offerings, according to media reports on Thursday.

The Securities and Futures Commission (SFC) fined Morgan Stanley, Bank of America Merrill Lynch, UBS and Standard Chartered a total of about 786.7 million Hong Kong dollars ($100 million). UBS was fined 375 million Hong Kong dollars for its participation in the IPOs of China Forestry in 2009 and Tianhe Chemicals in 2014. It also had its license to advise on corporate finance suspended for a year after the SFC banned it from sponsoring IPOs for 18 months and fined it 119 million Hong Kong dollars in March last year.

In addition, Standard Chartered was fined 59.7 million Hong Kong dollars for its involvement in the China Forestry IPO, after which the company was delisted for fraudulent accounting activity and subsequently placed into liquidation. Meanwhile, Morgan Stanley and Bank of America Merrill Lynch were penalized 224 million and 128 million Hong Kong dollars respectively for their shortfalls in the Tianhe Chemicals IPO.

Breaking the News / DZ