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Citigroup Fined $7.26 Million by Hong Kong Regulator for Poor Practices in IPO Transaction

Citigroup Fined $7.26 Million by Hong Kong Regulator for Poor Practices in IPO Transaction

Citigroup Global Markets in Asia has been fined $7.26 million by Hong Kong regulator for poor practices in handling the IPO application of Real Gold Mining Limited.  The Securities and Futures Commission (SFC) investigations uncovered incidents where Citi had failed to sufficiently verify Real Gold’s customers and documents were signed by the wrong responsible officer for the IPO application.

” Citigroup Fined $7.26 Million by Hong Kong Regulator for Poor Practices in IPO Transaction “

Real Gold Mining, a gold mining company was listed in Hong Kong in February 2009.  It was many times oversubscribed and market value soared to more than $2 billion a year later in 2010.  In May 2011, 2 years after its IPO, the company had been suspended due to accounting fraud.

The IPO of Real Gold Mining Limited (Real Gold) in 2009 was Citi’s first and only listing application.  In the investigation, Citi had cooperated fully to resolve the concern.

 

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