StanChart faces probe over Hong Kong’s IPO

Kuwait Times - - BUSINESS -

Stan­dard Char­tered could face “fi­nan­cial con­se­quences” after an in­ves­ti­ga­tion in Hong Kong over its role in an ini­tial pub­lic of­fer­ing, the firm said as it re­ported more dis­ap­point­ing earn­ings re­sults which sent its share price tum­bling. The Lon­don-based, Asia-fo­cused lender said au­thor­i­ties were look­ing into its con­duct while co-spon­sor­ing the list­ing in the city in 2009, deal­ing an­other le­gal blow to the bank which is al­ready fac­ing a US probe. “The Group has been in­formed by the Hong Kong Se­cu­ri­ties and Fu­tures Com­mis­sion that it in­tends to take ac­tion against Stan­dard Char­tered Se­cu­ri­ties (Hong Kong) ... in re­la­tion to its role as a joint spon­sor of an ini­tial pub­lic of­fer­ing listed on the Hong Kong Stock Ex­change in 2009,” it said in its in­terim earn­ings re­port. “If it does take ac­tion there may be fi­nan­cial con­se­quences” for the bank, it said in the re­port Tues­day. Stan­dard Char­tered said pre-tax profit im­proved in the third quar­ter to Septem­ber but was still well short of ex­pec­ta­tions, while rev­enue was also be­low fore­cast.

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