In its latest action against an investment bank Hong Kong's securities regulator reprimanded and fined CCB International Capital.
The Securities and Futures Commission, or SFC, in Hong Kong fined CCB International Capital HK$24 million ($3.1 million), according to a statement on its website. The SFC said CCB failed to discharge its duties as the sole sponsor in the listing application of Fujian Dongya Aquatic Products in 2013 and 2014.
The SFC investigation found CCB did not conduct all reasonable due diligence on Fujian Dongya before submitting the listing application. CCB also failed to conduct proper customer due diligence and did not keep an audit trail or written record of its due diligence work.
The SFC's investigation also exposed that one of the members of CCB's transaction team raised concerns about the authenticity of the signatures on the indemnity agreements. CCB is a financial and investment company owned by China Construction Bank Corporation.
