Core Viewpoint - The emergence of fraudulent accounts, referred to as the "Monkey Legion," is exploiting loopholes in overseas brokerage firms to actively participate in the Hong Kong IPO market, with an estimated 200,000 such accounts now in existence [1] Group 1: Fraudulent Activities - The "Monkey Legion" is utilizing brokers licensed in New Zealand and Vietnam to open fake accounts with lenient approval processes [1] - The account opening process does not require facial recognition and only requires identity information, allowing the use of bank cards not registered in the account holder's name [1] - The situation is likened to "the monkey hair of Sun Wukong, which can easily create many accounts" [1] Group 2: Regulatory Response - The Hong Kong Securities and Futures Commission (SFC) has stated it will actively monitor the market and take appropriate regulatory actions if any violations are found [1] - The Hong Kong Stock Exchange (HKEX) launched the IPO settlement platform "FINI" in 2023, mandating that all participants provide investor identification information [1] - The SFC requires licensed intermediaries handling orders referred from overseas to take reasonable steps to ensure the accuracy of customer identification information submitted to FINI [1] Group 3: Due Diligence Requirements - Licensed intermediaries must conduct additional due diligence on the corresponding overseas brokerage firms, including understanding the "underlying customers" and the expected nature and scale of transactions [1] - Intermediaries are also required to assess the anti-money laundering (AML) and counter-terrorism financing (CFT) monitoring measures of the overseas brokerage firms [1]