Market Chatter: Hong Kong Authorities Raid Local Offices of Chinese Brokerages on Suspected Wrongdoing

MT Newswires Live05-28

Hong Kong authorities raided the local offices of Chinese brokerages China Construction Bank (HKG:0939, SHA:601939) and CSC Financial (SHA:601066, HKG:6066) as part of a probe into misconduct during share offerings, Reuters reported Wednesday, citing sources.

The investigation by the city's Securities and Futures Commission comes amid a boom in IPO activity that has pressured banks and exposed gaps in due diligence and listing practices, the report said.

It was not yet clear which share offerings were the focus of the regulatory probe.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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