A Chinese firm's trading suspended less than a month of HK IPO, after auditor calls for investigation

A Chinese automotive parts reusable package firm, which went public in Hong Kong last month, had its shares trading suspended before April as its auditor flagged a 73 million yuan (HK$83.7 million) suspicious transaction, heightening concerns over the quality of initial public offerings in the city. 

Alsco Pooling Service (2649), which raised HK$223.7 million from the share sale on March 9, failed to release its 2025 annual results by the deadline of the end of March. 

The auditor, EY, asked the company to conduct an independent investigation into the transaction transferred to an entity between February 24 and 27, according to a filing. 

In a separate filing, the firm said it has established a special committee initially comprising all the independent non-executive directors, to investigate into the background and impact of the transaction. 

It has also appointed an external independent accounting firm with appropriate experience and credentials to assist the committee in conducting the investigation, it said. 

Its shares plunged 43.6 percent on the debut and were down by nearly two-thirds before suspension.