- Chinese investment bank is in midst of initial share sale
- CICC says an external consultant will carry out probe
China International Capital Corp., the investment bank that’s selling shares in an initial public offering in Hong Kong, said an independent investigator will look into alleged “irregularities” in trading in some clients’ online accounts and report to the securities regulator.
A worker resigned at a CICC unit in Hong Kong after trading in the accounts of some wealth management clients, the company said in a statement to Hong Kong’s stock exchange on Tuesday. The trades breached internal procedures and policies and may have violated an industry code of conduct, CICC said.
China International Capital Corporation Hong Kong Securities Ltd. hasn’t received any client complaints and the worker maintains that the relevant actions were carried out on the clients’ instructions, the firm said.
No amendments are needed to the prospectus for CICC’s share offer, the firm said. The Chinese investment bank and an existing shareholder are seeking as much as $811 million in a share sale that may be priced on Oct. 30 New York time.
The unit is required to appoint an external independent consultant to carry out a “detailed investigation” and report back to the Securities and Futures Commission on the unit’s actions since the irregularities were uncovered on Aug. 11, CICC told the stock exchange. The incident was reported to the SFC on Oct. 12, it said.
The Beijing-based company and China’s National Council for Social Security Fund are offering a combined 611.4 million shares at HK$9.12 to HK$10.28 apiece, according to terms for the deal obtained by Bloomberg. New shares account for 90.9 percent of the IPO, the terms show.