Hong Kong Exchanges and Clearing Limited’s subsidiary, The Stock Exchange of Hong Kong Limited (HKEX), has taken disciplinary action against three former directors of China Bright Culture Group, which was delisted under stock code 1859.
Key sanctions
• Director Unsuitability Statement: HKEX determined that Mr Liu Mu (former executive director, chairman and CEO), Mr Xia Rui (former executive director) and Ms Yao Li (former independent non-executive director) are unsuitable to hold any director or senior management position at China Bright Culture Group or its subsidiaries.
• Public Censure: Each of the three individuals is formally censured for breaches of the Listing Rules.
Findings
1. Rule Breach: All three failed to cooperate with HKEX’s Listing Division during an investigation into their conduct, contravening Listing Rules 3.09C and 3.20.
2. Additional Breach: Mr Xia Rui did not keep the Exchange informed of his up-to-date contact information, further violating Listing Rule obligations.
3. Severity: HKEX’s Listing Committee characterized the breaches as serious, noting that directors’ obligations to provide requested information persist for three years after leaving office and do not lapse following delisting.
Context
• Investigation Process: The Listing Division sent multiple investigation and reminder letters to each former director; none responded. Only Mr Xia answered one phone call but refused to supply an updated email address.
• Date of Decision: The disciplinary statement was issued on 21 April 2026.
• Scope: The sanctions apply solely to the three named individuals and not to China Bright Culture Group or any other current or former directors.
Implications
HKEX’s decision reinforces post-delisting accountability, signalling that directors remain obligated to cooperate with regulatory inquiries well beyond their tenure.
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