Date Company/ Name Breach Conduct Disciplinary Actions
12 December 2018

• Chen Xing Development Holdings Limited (“Company”)

• Mr Bai Xuan Kui, executive director (“ED”) and Chairman of the Company

• Mr Bai Wu Kui, ED and Chief Executive Officer of the Company

• Mr Bai Guo Hua, ED of the Company

• Mr Dong Shi Guang, ED of the Company

(Collectively, “Relevant Directors”)



• MLR3A.23

• MLR14.34

• MLR14.38A

• MLR14.40

• Director’s Undertaking




                       
• Company breached Rules 3A.23, 14.34, 14.38A and 14.40 by failing to consult with its compliance adviser where a number of notifiable transactions were contemplated, and by failing to comply with the announcement and/or circular and prior shareholders’ approval requirements in relation to 14 notifiable transactions.

• Relevant Directors breached their respective Undertakings for failing to use their best endeavours to procure the Company’s compliance with the Exchange Listing Rules.

REGULATORY MESSAGE:

Directors are responsible for procuring the Company’s compliance with the Exchange Listing Rules. The Exchange expects directors to be familiar with the provisions of the Exchange Listing Rules, and to proactively seek advice and assistance from professional parties, such as compliance advisers, prior to entering into transactions which are governed by the Exchange Listing Rules.

The Company’s failure to comply with the notifiable transactions requirements of the Exchange Listing Rules deprived the investors of their right to the timely receipt of information in relation to the Company’s subscription of wealth management products, and for shareholders, their right to vote on the transactions which required their approval before they were entered into by the Company. Such failure has a negative impact on market integrity and investors’ confidence in our securities market.

Failure by directors to take timely remedial action, when faced with knowledge of the Company’s breaches of the Exchange Listing Rules, can demonstrate a serious disregard for compliance. The Exchange takes non-compliance with the Exchange Listing Rules seriously and will, where appropriate, take action against issuers and directors who breach their obligations and duties.
           
SANCTIONS:


Public Statement Involving Criticism of

• Chen Xing Development Holdings Limited 

Public Censure of

 

• Mr Bai Xuan Kui

• Mr Bai Wu Kui,

• Mr Bai Guo Hua

• Mr Dong Shi Guang

DIRECTIONS:

• Directors’ training as described in the news release

NEWS RELEASE:

https://www.hkex.com.hk/News/News-Release/2018/181212news?sc_lang=en