Abstract:Hong Kong-centric CLSA Premium Ltd, formerly known as KVB Kunlun, announced today that it has received a letter from the Stock Exchange informing it of its decision that the company has failed to maintain a sufficient level of operations and assets of sufficient value as required by Rule 13.24.
Hong Kong-centric CLSA Premium Ltd, formerly known as KVB Kunlun, announced today that it has received a letter from the Stock Exchange informing it of its decision that the company has failed to maintain a sufficient level of operations and assets of sufficient value as required by Rule 13.24, and that trading in the Company's shares will be suspended on 3 February 2023 under Rule 6.01(3) of the Listing Rules unless the Company applies for a review.
Since the listing and sale of Chinese and Japanese medicines products and healthcare products in the PRC and Hong Kong in May 2022, the Stock Exchange has considered the broker operates the business of providing leveraged foreign exchange, commodities, and index trading services in Australia, New Zealand, and Hong Kong, each of which has not been demonstrated to be of substance, viable, and sustainable.
Since the deterioration of the company in 2019, none of the business strategies have been successful in increasing the size and profitability of the Margin Dealing Business. The operation in New Zealand and Australia ended/was terminated in 2022. The Margin Dealing Firm's last enterprise - a bullion dealing business in Hong Kong - has a limited operating history and a small operating size.
In addition, the Trading Business has a relatively short working history and is a small size business.
The Company's total assets and net assets were HK$284 million and HK$246 million, respectively, as of 30 June 2022. Its entire assets were mostly cash and bank balances totaling HK$221 million. As previously stated, the Company did not seem to have adequate assets to operate a successful and sustainable company.
The Stock Exchange is not convinced that the Company has enough assets to satisfy Rule 13.24.
According to the Letter, the Company must re-comply with Rule 13.24 of the Listing Rules, follow any resuming instructions issued by the Stock Exchange, and be in full compliance with the Listing Rules to the satisfaction of the Stock Exchange before trading the Company's shares may resume.
The Stock Exchange may terminate the listing of the Company's shares under Rule 6.01A(1) of the Listing Rules if trading is halted for a continuous period of 18 months.
The Company is now studying the Letter and debating it internally and with its expert advisors. Shareholders and prospective investors are cautioned that the Company has yet to decide whether or not to seek a review of the Decision, and the result of any review if conducted, is unknown.
WikiFX App Download for Smartphones
Download link: https://www.wikifx.com/en/download.html
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
The US Dollar (USD) outperformed its main competitors on Monday, and it is still strengthening early on Tuesday. The US Building Permits and Housing Starts data for March will be available on the docket. Later in the American session, a number of Fed members, including Chairman Jerome Powell, will be giving talks. The Federal Reserve (Fed) will also release numbers on industrial production.
The US Dollar is stable compared to its main competitors after finishing Tuesday on a positive note. There won't be any significant data releases on the US economic docket, but a number of Federal Reserve (Fed) policymakers will be speaking on Wednesday. During European market hours, Eurostat will make changes to the March inflation figures available.
Interactive Brokers has expanded trading hours for US Treasury bonds, now allowing trading for 22 hours daily.
Proprietary trading firms, commonly known as prop firms, have been gaining attention in the forex and cryptocurrency industry. These firms recruit traders to trade with their capital, offering potentially lucrative opportunities. However, the question arises: Are prop firms truly worth the hype?