Hong Kong’s Securities and Futures Commission ordered trading in Chinese tea chain ChaPanda’s shares suspended from 9 a.m. on October 13, citing serious concerns that its initial public offering may have been artificially manipulated.
The suspension forms part of an investigation into two groups suspected of orchestrating IPO fraud schemes that created a false impression of investor demand. The regulator restricted dealings in up to HKD 4.38 billion of assets linked to one group suspected of involvement in the IPOs of both ChaPanda and Cloudbreak Pharma.
ChaPanda, listed under its corporate name Sichuan Baicha Baidao Industrial, went public in Hong Kong in April 2024. The SFC said its investigation is continuing and that the suspension was intended to protect investors and maintain an orderly and fair market. [Securities and Futures Commission, in Chinese]