On October 13, trading in the Hong Kong-listed shares of new-style tea beverage brand CHABAIDAO (02555.HK) was abruptly suspended.
The Securities and Futures Commission of Hong Kong cited grounds for the halt, stating that the company's initial public offering (IPO) may have been artificially manipulated. The regulator said a suspicious syndicate is suspected of involvement in IPO fraud schemes related to CHABAIDAO, Cloudbreak Pharma, and Tianju Dihe, among others.
On the evening of October 14, CHABAIDAO issued an announcement on the Hong Kong Stock Exchange, saying its board of directors takes the matter very seriously and firmly believes that compliance with laws and regulations is of paramount importance. The company is urgently seeking legal advice on the directive and will work to address and resolve the concerns raised by the Securities and Futures Commission. The announcement also stated that the company is committed to fully cooperating with the regulator on any concerns and will make further announcements in due course. The company confirmed that its business operations remain normal and that, as of the date of the announcement, there have been no material changes to its business operations.
On October 14, Hang Seng Indexes Company announced that CHABAIDAO (02555.HK), having been suspended from trading due to a regulatory investigation, will be removed from the relevant Hang Seng indexes (the Hang Seng Composite Index, the Hang Seng Composite Industry Index - Consumer Staples, the Hang Seng Composite SmallCap Index, and the Hang Seng Composite MidCap & SmallCap Index), with the change effective on October 23, 2026. CHABAIDAO will be adjusted to the system's lowest price (i.e., HK$0.0001) before the market opens on Thursday, October 22, 2026, and will be used for index calculation that day, and will be removed from the relevant indexes at HK$0.0001 after the market closes that day.
Comments