HK-listed CMBC hits 21-mth low, parent Minsheng eases after HK regulators' statement

CMBC Capital Holdings

25/04/2019 06:07

** Shares of Chinese brokerage service firm CMBC Capital
 1141.HK  fall as much as 7.1 pct to HK$0.26, the lowest since
July 2017, and are on track for 4th session of decline 
    ** Hong Kong-listed stock of CMBC's controlling shareholder
China Minsheng Banking Corp  1988.HK  slides as much as 1.3 pct
to HK$5.91, the lowest since April 12
    ** China Minsheng's Shanghai shares  600016.SS  are down 0.6
pct
    ** Hong Kong's banking and securities regulators say they
carried out coordinated inspections on an unnamed bank within
the Mainland China-based banking group and a licensed
corporation (LC) owned by a subsidiary of the group. They found
the bank had had entered into a series of complex transactions,
which give rise to a number of serious concerns 
    ** Hong Kong Monetary Authority (HKMA) and Securities and
Futures Commission (SFC) say the findings were illustrative of
complex structures found at other Chinese banks which made it
"difficult to conduct rigorous risk assessments". Regulators did
not identify the companies  urn:newsml:reuters.com:*:nL3N2263TT
    ** Investor David Webb, known as an expert in corporate
governance, says on his website that firms including China
Minsheng and CMBC are very likely to be the firms referred to in
SFC-HKMA announcement (https://bit.ly/2KXxj7v)
    ** In response to Reuters' email request for comment, China
Minsheng and CMBC say they aware of the speculation and related
media reports, and say they have a complete risk control
management system operating strictly in accordance with
regulatory requirements
    ** China Minsheng and CMBC also say they will strengthen
their self-censorship and management to ensure their businesses
are in compliance with regulations
    ** The Hang Seng Finance Index  .HSNF  eases 0.2 pct and the
Hang Seng China enterprises index  .HSCE  slides 0.5 pct

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)