Hong Kong Exchange and Clearing’s former IPO vetting co-head is facing accusations of receiving cash and favors in return for stock listing approvals.
Consultant Richard Lum Chor-wah allegedly paid former co-head of IPO vetting at HKEX Eugene Yeoh Kim-loong HK$9.15 million ($1.18 million) and helped obtain a private club membership to approve stock listing applications.
The prosecutor claims that support was solicited for the approval of 12 IPOs on the Hong Kong bourse between 2015 and 2019.
Internal Probe
According to the prosecutor, an internal probe, triggered by an anonymous letter alleging that Yeoh had accepted benefits to approve new stock listings, found that telephone and e-mail records were erased on a daily basis. The bank transactions and private club membership deal were also not disclosed.
Then head of listing at HKEX David Graham subsequently deemed Yeoh unfit for his role and urged him to resign.
The trial began yesterday and both pleaded not guilty. The hearing was adjourned to August 16.
