Everbright Securities’ Private Placement Blocked on China Probe
Everbright Securities Co. (601788)’s plan to sell as many as 600 million shares in a private placement was blocked by the securities regulator after it started investigating the firm.
Listed companies that are under investigation won’t be allowed to conduct private placements, the China Securities Regulatory Commission said in response to a question about Everbright Securities’ approved offering, according to a statement on the watchdog’s website.
The securities regulator in May handed out punishments to Ping An Securities Co., Minsheng Securities Co. and Nanjing Securities Co., as it seeks to combat fraud. The CSRC plans to resume IPO approvals, which have been suspended since October, after rules aimed at improving investor protection take effect.
Everbright Securities was informed by the CSRC last month that it’s being investigated in relation to Henan Tianfon Energy-Saving Panel Science & Technology Co.’s initial public offering. The regulator had approved Everbright’s private placement in May.
A call to Everbright Securities Board Secretary Mei Jian’s office after normal business hours today wasn’t answered.
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