Beijing Capital Finance International (01468) rebounded sharply by more than 13%. Previously, it plummeted 85% in the 3 trading days before and after the resumption of trading. As of press release, it had risen 13.64% to HK$0.10, with a turnover of HK$140 million.
The Zhitong Finance App learned that Beijing Finance International (01468) rebounded sharply by more than 13%. Previously, it plummeted 85% in the 3 trading days before and after the resumption of trading. As of press release, it had risen 13.64% to HK$0.10, with a turnover of HK$140 million.
According to the news, Beijing Finance International recently announced that on March 3, 2024, the company received a letter dated March 2, 2024 (reminder) from the legal representative of Great Return Group Limited (Great Return), and Great Return is a registered holder holding approximately 11.9% of the company's issued share capital and one of the two petitioners requesting the board of directors to hold a special shareholders' meeting on March 8, 2024.
The reminder alleges that certain information relating to the mandatory sale and sale constituted inside information under section 307A of the Securities and Futures Ordinance. The company is alleged to have to disclose (among others) further details of the following: collateral rights established by shares held by KHIL and the liabilities covered by the relevant collateral prior to applying for the resumption of share trading (alleged insider information).
According to the legal opinion obtained by the Special Board Committee, although the alleged insider information may constitute insider information under the Securities and Futures Ordinance, if the company is unaware of the alleged insider information; and the board of directors has made every effort to obtain relevant information from Mr. Chen, the company has not breached its disclosure obligation for not disclosing the alleged insider information to shareholders and potential investors. Therefore, after evaluating the allegations and requirements contained in the reminder, the board of directors believes that the legal risk posed by the reminder is relatively low and is unlikely to have a significant adverse effect on the company.