Regulator raps CM Asset Management for undisclosed deals
Thursday, July 11, 2019
The Securities and Futures Commission has publicly criticized CM Asset Management (Hong Kong) for its failure to disclose dealings in the shares of Mengke Holdings, now known as Champion Alliance International, in contravention of the Code on Takeovers and Mergers.
Between August 2 and October 30, 2018, CMAM, acting as the investment manager of Shareholder Value Fund, executed 26 trades in Mengke’s shares during an offer period and failed to disclose these dealings as required by Rule 22 of the Takeovers Code.
As the investment manager of SVF, CMAM owned or controlled over 5 percent of Mengke Holdings’ issued share capital at the relevant time and was, therefore, an associate of the company.
CMAM accepts that it failed to comply with the takeovers code and agreed to the disciplinary action taken against it.
It has implemented improvements and remedial measures to ensure future compliance with the takeovers code.