Deals
The Magical Transformation of Hong Kong’s Listed Companies
- Regulators battle reverse takeovers by mainland businesses
- Shell companies can be worth HK$600 million, analysts say
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Chinese investors buying listed companies in Hong Kong reached record levels, prompting officials to look at ways to curb the practice amid concerns of market manipulation and volatility.
Hong Kong’s Securities and Futures Commission is investigating the link between wild share price moves and such so-called backdoor listings after a survey found that between 2013 and 2015, 56 companies saw their market value jump more than 1,000 percent within a six-month period, even though 39 of them were losing money.