Zhitong Finance App learned that on September 25, the Hong Kong Securities Regulatory Commission issued a notice stating that it had instructed the Hong Kong Stock Exchange to suspend stock trading in Bank Construction International Holding Group Limited (00171) from 9:00 a.m. on September 25, 2026, in accordance with section 8 (1) of the “Securities and Futures (Listing on the Stock Market) Rules” (“Securities Market Listing Rules”).
The Hong Kong Securities Regulatory Commission's action stemmed from an investigation into Bank Construction International's approval of a number of unsecured loans (such loans) totaling approximately HK$2 billion between March 2021 and December 2023.
According to the data obtained from the investigation by the Hong Kong Securities Regulatory Commission, over HK$1 billion (accounting for about 63% of the total amount of such loans) was indirectly transferred to Bank Construction International's major shareholders or related parties at the time through a series of quick subsequent transfers. This raises serious questions about whether the alleged borrowers are the real beneficiaries of such loans, and whether such loans have any real commercial purpose.
Investigations by the Hong Kong Securities Regulatory Commission also found evidence that Bank Construction International's due diligence and credit assessments for such loans were insufficient.
The Hong Kong Securities Regulatory Commission has raised significant concerns raised by the evidence obtained from the investigation to Bank Construction International, giving the company an opportunity to respond. However, Bank Construction International failed to address the concerns of the Hong Kong Securities Regulatory Commission in a satisfactory manner. In particular, the company failed to explain the commercial rationale for granting such loans.
In view of the significant concerns raised by the Hong Kong Securities Regulatory Commission regarding the financial situation of Bank Construction International, the Hong Kong Securities Regulatory Commission believes that suspending the trading of Bank Construction International shares is necessary or appropriate to maintain an orderly and fair market and protect the interests of the investors.
The investigation by the Hong Kong Securities Regulatory Commission is still ongoing.