In a rare move, Beijing Jingkelong, which won in-principle listing approval from the Hong Kong stock exchange last month, has had its application rejected by the listing committee on the grounds of insufficient disclosure.
The case is unusual in that listing candidates are seldom rejected once they gain approval.
Sources said that the stock exchange received complaints that the mainland supermarket chain did not make a full disclosure over a loan from company staff.
The stock exchange asked Jingkelong to submit further information in response to the complaints and the matter was discussed at Thursday's listing committee meeting.
The committee was not satisfied with the company's explanation and decided to reject the listing, the sources said.
The company was considering a reapplication or an appeal against the decision, the sources said.