Hong Kong regulators freeze US$15.9 million linked to suspected IPO fraud

Regulator action comes amid broader push to strengthen IPO safeguards after rapid market recovery Hong Kong’s securities regulator has frozen more than HK$125 million (US$15.9 million) in assets linked to a suspected market manipulation scheme, as authorities tighten oversight of the city’s booming IPO market. The regulator did not identify the entity involved or provide details of the listing in question. Under the order, Futu cannot dispose of, transfer or otherwise deal with the assets, or assist another person in doing so, without the SFC’s prior written consent. The regulator stressed that Futu was not the subject of its investigation and that the restriction did not affect the broker or its other clients.

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