Core Viewpoint - The Hong Kong Securities and Futures Commission (SFC) has instructed the Hong Kong Stock Exchange to suspend trading of Daxin Education (09986) shares starting from December 3, 2025, due to ongoing investigations into significant discrepancies in financial reporting and potential fraudulent activities [1][2] Group 1: Trading Suspension - The trading of Daxin shares was initially suspended on March 30, 2023, following the discovery of several audit issues by its former auditor related to software development projects and a UK acquisition [1] - The SFC believes that suspending trading is necessary to maintain a fair and orderly market while protecting the interests of investors during the investigation [1] Group 2: Financial Discrepancies - The SFC found that Daxin's financial statements for the periods ending June 30, 2023, and December 31, 2023, significantly overstated bank balances by RMB 36.4 million and RMB 76.3 million, which represent 19% and 55% of the reported net asset values, respectively [2] - There are suspicions that the software development and UK acquisition transactions may not be genuine and were not conducted on fair terms [2] Group 3: Integrity Concerns - The SFC suspects that Daxin submitted forged bank statements to conceal suspicious cash flows related to the aforementioned transactions, raising serious concerns about the integrity of the management, particularly Executive Director Zhang Hongjun [2] - The SFC also questions whether Daxin's shares were allowed to resume trading on September 2, 2024, based on false or misleading information provided by the company [2]
因涉嫌严重夸大银行结余 香港证监会暂停大山教育(09986)股份交易