The IPO was suspected of being manipulated, Chabaidao was suspended from the Hong Kong Stock Exchange

China News Service, Beijing, October 13. The Hong Kong Securities and Futures Commission issued a document on the 13th saying that it had taken action against two groups because they were suspected of participating in a fraud scheme with the intention of creating a false or untrue appearance regarding the demand for shares in the initial public offering.

It is reported that the Hong Kong Securities Regulatory Commission has, in accordance with relevant rules, instructed the Stock Exchange of Hong Kong Limited (the Stock Exchange) to suspend trading in the shares of Sichuan Baicha Baidao Industrial Co., Ltd. (Chabaidao) (stock code: 02555) starting from 9:00 this morning.

The Securities and Futures Commission of Hong Kong stated that the initial public offering of Cha Baida, which is highly concerned, may have been manipulated in order to create an unreal appearance regarding the demand for Cha Baida's shares. While the investigation continues, trading in Chamoido's shares is suspended, which is necessary or appropriate to maintain an orderly and fair market for the stock and safeguard the interests of the investing public.

The relevant person in charge of the Hong Kong Securities and Futures Commission said: "We believe that the actions taken so far have dealt a major blow to the two suspicious groups suspected of participating in the manipulation of initial public offerings. We have taken decisive action to suspend the trading of shares in Cha Baidao and preserve the assets related to the suspected scheme to protect investors and maintain the integrity and stability of the Hong Kong market."

It is understood that on April 23, 2024, Chabaidao was listed on the main board of the Hong Kong Stock Exchange, with an issue price of HK$17.5 per share. On the trading day before the suspension (October 12), Chabaidao reported HK$4.035 per share. The current share price has fallen by more than 70% from the issue price.