The Wealth Empire Crossing the Hong Kong

Chapter 296 Financial Fraud
Backed by a big tree to enjoy the shade, although Hang Seng Bank suffered heavy losses and was still facing a run on, but with the backing of HSBC, no matter how many customers withdraw money, the funds of all major business locations have not been cut off.

Compared with Hang Seng Bank, Hang Lung's side is much worse. Around noon, several business outlets were temporarily closed due to lack of funds.

The market value of Hang Lung Bank before the Carrian incident was 26 billion Hong Kong dollars, but by the close of trading this afternoon, the total market value has fallen to less than one billion Hong Kong dollars, and it has fallen by nearly two-thirds. Hang Lung Properties was implicated by it, and its market value also plummeted by nearly a quarter .

Now all parties are looking to see if the Chen family will seek help in the future. If there is no good news on the weekend, I am afraid that it will fall sharply on Monday, or even directly drop below one Hong Kong dollar to delist.

The Xiangjiang Securities Exchange Management Office has a very high error correction efficiency. In order to severely crack down on financial fraud by listed companies, the relevant penalties for financial fraud have been specially added to the Hong Kong Securities Law.

This includes not only the general manager of the company, but none of the directors, supervisors, and finances. The company’s fines start at [-] million yuan, and individuals will also be punished by law. Serious cases will be imprisoned for more than three years but less than ten years.

At present, it is only waiting for the approval of the Legislative Council. I believe that it will be officially implemented starting next week. This will be a curse for the current listed companies. I am afraid that some companies' financial statements in January will be very exciting.

There are two little guys in the family, and he went to Baodao a few days ago, it was rare for Li Jianhui to go to work in the company on Saturday.

Li Jianhui wanted to stay at home with his family leisurely, but unfortunately things backfired. Within an hour after breakfast, a phone call came, and he had to rush to Wheelock Building in a hurry.

Chen Zengxi is really powerful enough. He broke his wrist and sold Hang Lung Bank directly to Sakura Bank for [-] million Hong Kong dollars.

In this way, the mess of Hang Lung Bank has nothing to do with the Chen family. Although this made the Chen family lose nearly one billion assets, it also prevented the Chen family from being dragged down by Hang Lung Bank.

If it's just this, it's not worth it for Li Jianhui to give up resting at home and rush to the company.

At present, Xiangjiang does not have a two-day break in the morning, and even government employees have one day off in the morning.

At 24 a.m. on Saturday, the Securities and Exchange Management Office announced yesterday’s preliminary financial review of 6 listed companies, of which [-] had no financial problems, and the financial statements of the other [-] companies for the third quarter did not match the published ones.

Although there is nothing wrong with Donghua, it has a great impact on the Far East Exchange and the entire stock market.

Although one surprise inspection is not very representative, the company with problems accounted for 25% of the total number of random inspections, which is a rather terrifying proportion.

Two of them are companies that have been cooperating with the Xin Jian Department for a long time, and the leaders of the two companies are also probationary members of the East China Association.

Inside the office, Li Jianhui said in a deep voice: "Second Uncle, Yong Bin, Lun Zhi, whether this matter is big or small, it mainly depends on how the stock exchange plans to deal with it."

Liu Yongbin is the chairman and general manager of Shixin Building Materials Company. This company cooperates with many real estate companies of Donghuahui. It has developed very rapidly in the past two years. Although the stock price fell on Thursday and Friday, the current total market value is still as high as 4.76 billion Hong Kong dollars.

At the same time, this is also the son of Li Fuzhao's wife's cousin. The relationship is a bit distant, but it is also related to the relatives. This company is also listed on the Far East Exchange.

Zhang Lunzhi is the chairman and general manager of the Yuen Long Plastic Company, and has cooperated with many companies under the Xinjian Group.

In the past two years, relying on the same development of the Xinjian Department, the current total market value is as high as 3.6 million Hong Kong dollars.

It's just that I didn't expect that the financial statements of these two companies would be falsified, and the level of falsification is obviously not very good, otherwise it would not be so easy to find out.

Although he was somewhat dissatisfied with these two companies, Li Jianhui did not want to ignore it. After all, Xinjian Investment is the second largest shareholder of the Far East Exchange. If the problems of these two companies are not resolved, it will be very detrimental to the development of the Far East Exchange.

At the same time, Xinjian Investment is also one of the major shareholders of these two companies. Although they basically don't care about the affairs of these two companies, they can't watch the two companies have too many problems.

"Jianhui, I have already made some inquiries with the Securities and Exchange Management Office, because there was no specific law before, and the ones found out this time will only be held high and put down gently.

The biggest problem now is the stockholders. Because of the lessons learned by Carnegie, if there is no financial support, the stock prices of Shixin Building Materials and Yuen Long Plastics will collapse directly when the market opens on Monday. "

Li Jianhui also knows the purpose of Li Fuzhao bringing these two people here. At present, the Li family in East Asia is not rich in funds, and these two companies are not leading hot stocks. In addition to this financial fraud incident, if they enter the market, they must do a good job in the long run. The preparations for being locked up, obviously, the Li family in East Asia didn't have that much money to spend.

And whether I am the Far East Exchange or the two major companies, and I am the speaker of the Donghuahui, I should help out of the situation and reason.

"Yong Bin, Lun Zhi, since this incident has already happened, I will not say anything more, I just hope you can remember this lesson, and the Hong Kong Stock Exchange will only become more and more formal in the future.

Don't try to take advantage of loopholes, just be what you should be. Your own internal finances are one set, and public announcements are another set. That won't work. Fortunately, the difference in data is not too big, otherwise the ending between you and Chen Songqing will not be the same. What a difference.

On Monday, I will protect the market of the two companies depending on the situation, and also look at the reactions of shareholders and the stock exchange management office. If it is serious, I suggest that you two resign from the company and manage behind the scenes, so as to benefit all walks of life. An explanation. "

Hearing Li Jianhui's words, Liu Yongbin and Zhang Lunzhi secretly breathed a sigh of relief. As long as Li Jianhui is willing to protect the market, the company will have no major problems.

As for the issue of resignation, they never thought about it at all. There are not a few people who have problems this time, and Li Fuzhao also sniffed out the news, believing that the punishment for them will not be too great.

Those stockholders, they don't care too much. These are all three-minute hot spots. As time goes by and new stockholders enter, everyone will gradually forget about the company's financial fraud.

Today, not only Li Jianhui and others are discussing how to solve the trouble, but the other major forces are also not idle.

Previously, the Xiangjiang government did not have a special agency to manage the exchange and listed companies, nor did it have a clear law, so that in these years of barbaric growth, many operations were not so in line with the rules.

In the past two years, the government has strengthened supervision in this area, but many problems still exist, and the securities law is not perfect.

Problems with so many companies in this surprise inspection are also due to the sequelae of neglected management over the years.

With the continuous strengthening of management and the continuous improvement of laws, it will be more difficult to go public in the future, and listed companies will become more transparent.

The rights and interests of these shareholders and investment institutions are better protected, which is also conducive to the development of Hong Kong Securities Finance.

After Li Fuzhao and others left, Li Jianhui immediately called Pang Yi and informed the investment company's directors of other companies to hold a meeting at [-] p.m.

The issue of the two major companies this time also shows the dereliction of duty of the directors assigned by Xinjian Investment Company to the two major companies.

(End of this chapter)