Executives of Hong Kong financial services firm Convoy under investigation by graft watchdog
Shares in the company fell 7 per cent after early media reports of raids on its offices by the Independent Commission Against Corruption, prompting the company to seek a suspension of trading
Two executive directors of Hong Kong financial services firm Convoy Global Holdings have been put under investigation by the city’s anti-graft body, the company said on Thursday, confirming media reports that had sent its shares down 7 per cent and prompted a suspension of trading.
The company, a financial adviser to Hong Kong’s Mandatory Provident Fund pension scheme and a provider of retirement planning and insurance services, first announced the suspension during the morning trading session, without giving any reasons.
The shares had fallen 7.2 per cent to 16.7 HK cents after several media reports early in the day that the Independent Commission Against Corruption had raided the home of the company’s vice-chairwoman, Fong Sut-sam, and its offices in the North Point district.
Convoy said in a statement later on Thursday that the investigation involved two executive directors, and the firm had already suspended them from duty. It did not elaborate. Earlier, president and executive director Ng Wing-fai had said in an email to staff seen by the South China Morning Post that the company would fully cooperate with the investigation and would be operating as normal.
The ICAC said in a later statement that it and the market regulator, the Securities and Futures Commission, had searched eight premises in a joint operation and had arrested three senior executives of a listed company for suspected corruption. It did not give the name of the company or give any further details. The SFC declined to comment.
The SFC has in recent weeks taken action against companies connected to Convoy and Cho Kwai-chee, an executive director of Convoy and a well known local investor nicknamed “Doctor Cho” because he is a medical doctor.