ChaPanda Issues Statement After Hong Kong Trading Halt; Stock to Be Removed From Hang Seng Indexes
HONG KONG — Tea chain ChaPanda issued an announcement on the Hong Kong exchange on the evening of October 14 saying its board attaches great importance to the trading halt, that compliance with laws and regulations is essential, and that it is urgently seeking legal advice on the Securities and Futures Commission's directive and will work to address the SFC's concerns, Sina Finance reported. ChaPanda's shares were halted on October 13 by the Hong Kong exchange at the SFC's direction.
The SFC's stated reason for the halt was that the company's initial public offering may have been manipulated. The regulator said suspected groups were allegedly involved in IPO fraud schemes involving ChaPanda and other listings. ChaPanda pledged full cooperation with the SFC and further announcements in due course, and confirmed that group operations remain normal with no material change as of the announcement date. The company operates nearly 9,000 stores on the mainland, whose operations were not affected by the halt.
Hang Seng Indexes announced on October 14 that ChaPanda, halted due to a regulatory investigation, will be removed from the Hang Seng Composite Index, the Hang Seng Composite Industry Index – Consumer Staples, the Hang Seng Composite SmallCap Index and the Hang Seng Composite MidCap & SmallCap Index, effective October 23, 2026. The stock will be adjusted to the system minimum price of HK$0.0001 before the open on October 22 for that day's index calculation and removed after that day's close. The SFC has stated a zero-tolerance stance toward IPO manipulation, price rigging and false markets, according to the reports.
(Sources: Sina Finance, ChaPanda HKEX announcement, Hang Seng Indexes announcement, SFC)
Source: GSM · USA (original Chinese edition)
Photo: Arne Müseler／CC BY-SA 3.0 de（Wikimedia Commons）
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