Hong Kong regulator SFC orders trading suspension for Lerado
Hong Kong’s Securities and Futures Commission ordered Lerado Financial Group Company to suspend trading on Tuesday after the regulator alleged the company gave misleading information in an announcement in 2015, Lerado said in a stock exchange filing.
The company will not proceed with its proposed rights issue plan until it reaches a resolution with the SFC, Lerado chairman Mak Kwong-yiu said in the statement. In March the company proposed a rights issue to raise HK$460.64 million.
The regulator said the action was taken after it found Lerado had given “materially false, incomplete or misleading information” in a circular dated October 26, 2015 about an open offer.
The shares suspension order is “in the interest of the investing public”, the company cited the SFC as saying.
Lerado is involved in financial services, stock broking and manufacturing of children’s plastic toys. It has been listed since 1998 and has a current market capitalisation of HK$322 million. It reported a net loss of HK$246.46 million in 2016.