Abstract: The SFC acted against both IPO issuers and investors, suspending Cloudbreak and Baicha and making the largest asset restriction in SFC history. The SFC suspects syndicates created false demand for IPO shares, and IPO proceeds may have returned to them through undisclosed financial-product agreements. Based on the SFC press releases, we summarize red flags usable in ECM research and investment, three before listing and two after listing.
CLOUDBREAK, CHABAIDAO, TIANJUDIHE, EDA GROUP HLDGS, KINGFARPROPERTY, ZHONGMIAO, VISEN PHARMA, NEWTREND, NSING TECH, SENIOR MATERIAL
Research on Hong Kong and A+H equity offerings, from the first filing to the aftermarket. Coverage includes pre-IPO early thoughts on the business and valuation, analysis of the final deal terms and cornerstone investors, and updates as new prospectus versions are filed.
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