The Stock Exchange of Hong Kong Limited has criticised Sunshine 100 China Holdings Ltd and censured several of its directors, including executive chairman Yi Xiaodi and vice chairman Fan Xiaochong, for inadequate due diligence and internal control failures regarding high-risk loans totaling RMB 1.11 billion granted between 2020 and 2022. These loans, tied to distressed debtors and secured by a Beijing building, were part of a speculative strategy to acquire the property at a discount through judicial auction. The directors failed to prepare recovery strategies or meet disclosure obligations, contributing to the company’s delayed financial reporting. All involved directors are directed to attend training to address these issues.
Resources: https://www.hkex.com.hk/News/Regulatory-Announcements/2024/241126news?sc_lang=en
