With a big tree at its back to enjoy the shade, Hang Seng Bank suffered heavy losses and faced a run, but with the backing of HSBC, no matter how many customers made withdrawals, the funds at its major business locations were not cut off.
Compared to Hang Seng Bank, Hang Lung was much worse. Near noon, several branches temporarily closed due to lack of funds.
Hang Lung Bank's market capitalization before the Carin incident was HK$2.6 billion, but by the close of trading this afternoon, its total market capitalization was less than HK$1 billion, down by nearly two-thirds. Hang Lung Properties was implicated, and its market value also plummeted by nearly a quarter.
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Now all parties are looking to see if the Chen family can find help in the future. If there is no good news over the weekend, it is feared that it will fall sharply on Monday, and it is even possible that the Hong Kong dollar will fall below one dollar and be delisted.
The Xiangjiang Securities Exchange Management Office is very efficient in correcting errors. In order to severely crack down on financial fraud by listed companies, it has specifically added relevant penalties for financial fraud to the Xiangjiang Securities Law.
This includes not only the company's general manager, directors, supervisors, and financial personnel, but also the company's fines starting at 10 million. Individuals will also be subject to legal sanctions. In serious cases, they will be imprisoned for not less than three years but not more than ten years.
We are just waiting for approval from the Legislative Council. I believe it will be officially implemented starting next week. This will be a tightrope for current listed companies. I am afraid that some companies' financial statements in January will be very exciting.
With two little ones at home, and a trip to Baodao a few days ago, it was rare that Li Jianhui did not go to work at the company on Saturday.
Li Jianhui wanted to spend time at home leisurely with his family, but unfortunately it backfired. Less than an hour after breakfast, a phone call came, and he had to rush to Wheelock Building.
Chen Zengxi is so powerful that he cut off his wrist and sold Hang Lung Bank directly to Sakura Bank for HK$50 million.
In this way, the mess of Hang Lung Bank has nothing to do with the Chen family. Although this caused the Chen family to lose nearly one billion in assets, it also prevented the Chen family from being dragged down by Hang Lung Bank.
If it were just this, it wouldn't be worth it for Li Jianhui to give up resting at home and rush to the company.
There is no such thing as two days off in the morning in Xiangjiang. Even government workers have six days off and one day off.
At 9 a.m. on Saturday, the Securities and Exchange Management Office announced yesterday’s preliminary review of the finances of 30 listed companies. Among them, 24 companies had no financial problems, and the third-quarter financial statements of the other 6 companies were inconsistent with what was announced to the public.
Although there would be nothing wrong with Donghua, it would have a huge impact on the Far East Exchange and the entire stock market.
Although one surprise inspection is not very representative, the companies with problems accounted for 25% of the total number of random inspections, which is a quite terrifying proportion.
Two of them are companies that have long-term cooperation with the Xin Jian Department, and the leaders of the two companies are also probationary members of the Tung Wah Association.
In 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 handle it."
Liu Yongbin is the chairman and general manager of Shixin Building Materials Company. This company cooperates with many real estate companies of Tung Wah Club and 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 the son of the cousin of Li Fuzhao's wife. The relationship is a bit distant, but they are still related. This company is also listed on the Far East Exchange.
Zhang Lunzhi is the chairman and general manager of Yuen Long Plastics Company, and has cooperation with many companies under the Xinjian Department.
In the past two years, thanks to the rapid development of Xinjian Department, the current total market value is as high as 360 million Hong Kong dollars.
I just didn't expect that these two companies' financial statements actually falsified, and the level of falsification was obviously not very high, otherwise they would not have been found out so easily.
Although he was somewhat dissatisfied with what these two people did, 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 it basically has no involvement in the affairs of these two companies, it cannot watch these two companies have too big problems.
"Jianhui, I have already made some inquiries with the Securities and Exchange Management Office. Because there were no specific laws before, what I found this time will only be raised high and put down gently.
The biggest problem now is on the side of the stock investors, because Carining has learned from the past, if there is no capital to support the market, I am afraid that the stock prices of Shixin Building Materials and Yuen Long Plastics will collapse directly when the market opens on Monday."
Li Jianhui also knew the purpose of Li Fuzhao bringing these two people here. At present, the Li family of 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 protection, they must do a good job in the long term.
To prepare for the trap, it is obvious that the East Asia Li family does not have that much money to spend.
And whether it was the Far East Exchange or these two major companies, plus he was the talker of the Donghua Society, he should help based on both emotion and reason.
"Yong Bin, Lun Zhi, since this has happened, I won't say anything more. I just hope you can remember this lesson and the Xiangjiang Stock Exchange will only become more formal in the future.
Don't think about taking advantage of loopholes, just do it as it should be. Your own internal financial affairs are one thing, and public announcements are another thing. That won't work. Fortunately, the difference in data is not too big, otherwise the outcome of you and Chen Songqing will not be the same.
What a difference.
On Monday, I will protect the market of the two companies according to the situation, and also look at the reactions of shareholders and the Securities and Exchange Management Office. If it is more serious, I suggest that you two resign from the company and manage it behind the scenes, so as to provide all walks of life with
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 not have big problems.
As for the issue of resigning from their posts, they have never thought about it at all. There are many problems this time, and Li Fuzhao has also spoken out, believing that the punishment for them will not be too big.
Those investors don't care too much. These are just three-minute hot topics. As time goes by and new investors enter, everyone will gradually forget about the company's financial fraud.
Today, not only Li Jianhui and others are discussing how to solve the problem, but several other major forces are also not idle.
Previously, the Hong Kong government did not have a specialized agency to manage exchanges and listed companies, nor did it have a clear law. As a result, in these years of barbaric growth, many operations did not comply with the rules.
In the past two years, the government has strengthened supervision in this area, but many problems still exist, and securities laws are not perfect.
The problems that occurred in so many companies during this raid are also due to the sequelae of neglected management over the years.
As management continues to strengthen and laws continue to improve, 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 also contributes to the development of Xiangjiang 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 2 p.m.
The problems with the two major companies this time also showed the dereliction of duty of the directors assigned to these two major companies by Xinjian Investment Company.