The bank is the latest ensnared in a widening investigation by Hong Kong’s regulator, which is clamping down on shoddy work by IPO sponsors. The problem appears to go back to its role in the 2009 listing of China Forestry.
China’s largest diary producer Yili Group is planning to buy a stake in a Hong Kong-listed rival for around $680 million, doubling down on a high-growth sector that has been beset by multiple scandals.
Huaneng Power International, a Hong Kong-listed power producer, has become the latest company to buy assets from its parents. But investors are starting to fear that Chinese asset injections may be mispriced.