SFC fines Changjiang Corporate Finance (HK) Limited $20 million and suspends its licence for serious and extensive sponsor failures

enforcement

Changjiang Corporate Finance (HK) Limited (CJCF) has been fined $20 million and reprimanded by the Securities and Futures Commission (SFC) due to serious failures in their role as a sponsor for six listing applications. The SFC’s investigation revealed that CJCF had not conducted proper due diligence, failed to provide adequate guidance to companies regarding listing qualifications, neglected to disclose material information in prospectuses, and did not maintain proper records. CJCF’s sponsor license has been partially suspended until they meet the necessary legal and regulatory requirements. The shortcomings included not assessing risks associated with legislative bills and white papers that could impact the business of Pacific Infinity, failing to ensure disclosure of essential information about AsiaPac’s profitability model, and providing contradictory justifications regarding Perpetual Power’s eligibility for listing. Additionally, the SFC found deficiencies in CJCF’s listing applications for Van Chuam, Rising Sun, and Byleasing, including inadequate due diligence, failure to disclose material information, improper advice given and poor record-keeping. CJCF’s conduct was substantially below expected standards, resulting in regulatory breaches. The imposed sanctions consider the severity of CJCF’s deficiencies, the need for deterrence, and CJCF’s financial situation. CJCF will engage an independent reviewer to assess their sponsor business practices as part of the remedial actions.

Resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR92

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