Hong Kong securities regulator orders rare trading halt for GME Group

GME group

22/02/2017 07:52

Hong Kong, Feb 22 (Reuters) - Hong Kong's Securities and 
Futures Commission (SFC) on Wednesday ordered a trading 
suspension in shares of underground construction services firm 
GME Group  8188.HK , in a rare move by the regulator on what was 
the company's first day of trade. 
    The SFC used a provision that allows it to halt trading if 
it believes the company concerned has distributed "any 
materially false, incomplete or misleading information" in 
relation to its affairs, has failed to comply with SFC rules, or 
if the SFC deems it is in the public interest to do so. 
    The SFC, which gave no reason for the trading halt, has only 
intervened in trading on a small number of occasions. 
    GME did not immediately respond to a Reuters request for 
comment.  
    Previous examples of SFC intervention involved Hanergy Thin 
Film Power Group Ltd  0566.HK , a solar panel maker currently 
subject to an SFC investigation; China High Precision Automation 
Group Ltd  0591.HK , a manufacturing holding company; and sports 
fabric maker Hontex International Holdings Co Ltd. 
    China High Precision, which was suspended in August 2012, is 
still awaiting a trading restart from the SFC, which has not 
disclosed details of the case. 
    Hontex shares were first suspended in March 2010 before 
their eventual delisting after the regulator investigated 
information provided to investors in the firm's initial public 
offering (IPO) prospectus. 
    GME's shares last traded at HK$3.47, surging more than 
six-fold from its IPO price of HK$0.54.  
    Among some of the major contracts listed on GME's website is 
one for the Hong Kong-Zhuhai-Macau bridge, in which it is 
involved in the construction of a tunnel. 
    The SFC and Hong Kong exchange last month issued a joint 
notice expressing concern over potential instances of 
rule-breaking with respect to listings on the Growth Enterprise 
Market, where GME Group is listed.  urn:newsml:reuters.com:*:nL4N1FA3RT 
 
 (Reporting by Anne Marie Roantree and Michelle Price; Editing 
by Christopher Cushing) 
 ((annemarie.roantree@thomsonreuters.com; +852 97387151; Reuters 
Messaging: annemarie.roantree.thomsonreuters.com@reuters.net)) 
 
Keywords: GME GROUP STOCKS/