Hong Kong’s anti-corruption watchdog has charged four financial professionals with conspiracy to defraud in connection with the stock market debut of a Macau construction company, underscoring growing regulatory scrutiny over audit practices and governance in the city’s capital markets.
The four, who worked for Wellink CPA and its sister advisory firm, also allegedly colluded with three family members to conceal their identities when subscribing to nearly 5.9 million shares during the company’s initial public offering (IPO), falsely claiming to be independent investors with no ties to Huarchi, according to the charges.
The alleged offences occurred between 2016 and 2021. The four professionals were identified as Lam Shui-mei, Siu Yuen-shan, Chan Wai-lun and Wong Yat-chung. The listing application of Huarchi Global was approved in October 2019, and an IPO was launched the next month. AFG Securities Limited was one of the placing agents. Huarchi Global was delisted in September 2023, according to ICAC.
Investigators suspect the chairman paid HK$1.5 million to incentivise the group to subscribe to IPO shares, artificially boosting investor demand, the ICAC said.
