The Stock Exchange of Hong Kong Limited has publicly censured Shanghai Henlius Biotech, Inc. (Stock Code: 2696) and criticized Dr. Scott Shi-Kau Liu, its former executive director and CEO, for regulatory breaches related to the use of IPO proceeds. On its first day of listing on September 25, 2019, Henlius entered into an investment management agreement with AMTD Global Markets Limited, engaging the firm to manage $117 million of its IPO proceeds. This agreement did not align with the intended use disclosed in the prospectus, and the company failed to disclose the agreement and its implications in a timely manner in its annual reports. Dr. Liu approved an upfront management fee payment to AMTD without adequately understanding the agreement’s terms or consulting the board or compliance adviser. Both the company and Dr. Liu accepted the sanctions imposed by the Exchange.
Resources: https://www.hkex.com.hk/News/Regulatory-Announcements/2025/250902news?sc_lang=en
