Posted inRegulation

Hong Kong trading suspensions

Several Hong Kong authorised funds have companies in their top ten holdings that have been under trading suspensions imposed by the Hong Kong Stock Exchange.
Alibaba Pictures, the film production and investment arm of Alibaba, had trading halted in August due to issues with its accounting. Owner Alibaba is scruitnizing the company for “possibly non-compliant treatment of financial information” that occurred before the ecommerce giant acquired it.
GAM Asia Equity Hedge Open USD has a 4.9% weighting to Alibaba Pictures, making it the fund’s eight largest holding.
Trading in shipbuilder China Rongsheng was halted in August due to the risk of insolvency. China Rongsheng makes up 5.8% of BOCHK China Golden Dragon, making it the fund’s third largest holding.
Tianhe Chemical, which had trading halted in September due to allegations of fraud from a short seller, provided a vigorous rebuttal to what it called “twisted facts and intertwined fiction” and today resumed trading. However, the share price fell 26%.
Tianhe is the top holding of Standard Life Global Emerging Markets Equity Unconstrained, with a 3.9% weighting.
Standard Life China Equities has a 2.9% weighting in Tianhe, making it the fund’s sixth largest holding. 

Part of Mark Allen.