Exchange’s Disciplinary Action against Four Directors of Arta TechFin Corporation Limited (Stock Code: 279) (Formerly Known as Freeman FinTech Corporation Limited)

enforcement

The Stock Exchange of Hong Kong has taken action against several former executive directors of a money lending business that was mismanaged. Mr. Wang Xiaodong received a Director Unsuitability Statement in addition to a public censure, meaning he is deemed unsuitable to hold a position as a director or in senior management. Ms. Chow Mun Yee, Mr. Yang Haoying, and Mr. Zhao Tong were censured and directed to attend training. The company expanded its money lending business and granted $2.28 billion in unsecured loans to borrowers, who all defaulted, resulting in impairment losses of over $1.9 billion. The Exchange was concerned about the lack of due diligence on the borrowers and the commercial rationale for granting the loans. The four executive directors responsible for or involved in the money lending business failed to ensure proper due diligence, credit assessments, and monitoring of the loans. Mr. Wang also failed to respond to the Exchange’s enquiries.

resource: https://www.hkex.com.hk/News/Regulatory-Announcements/2023/230504news?sc_lang=en

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