Hong Kong Stock Exchange: Disciplinary actions taken against FINGERTANGO (06860) and 8 former directors.

On January 16, the Hong Kong Stock Exchange issued a disciplinary action announcement regarding FINGERTANGO Holdings Limited (06860) and eight former directors. The Hong Kong Stock Exchange condemned FINGERTANGO and issued statements of unsuitability and condemnation towards former executive directors and Chief Financial Officer Liu Zhanxi, former executive directors and joint company secretaries Wang Zaicheng and Wu Junjie, former independent non-executive director Yao Minru. A statement of harm to investor interests and condemnation was issued towards former executive director, chairman, and CEO Liu Jie. Meanwhile, former executive directors Zhu Yanbin, former independent non-executive directors Guo Jingdou, and former independent non-executive director Liu Jianhua were criticized, and Zhu Yanbin, Guo Jingdou and Liu Jianhua were instructed to undergo training. In accordance with further instructions from the Hong Kong Stock Exchange, if Liu Jie and Wu Junjie, either one of them, were to serve as directors or senior management of the company or its subsidiaries 14 days after the date of the disciplinary action announcement, the company's listing status will be canceled in accordance with Rule 2A.10A(2)(b) of the Listing Rules. The Hong Kong Stock Exchange ruled that FINGERTANGO listed in July 2018 and two business days later, the company used 46% of the net proceeds from the listing to subscribe to non-listed wealth management products, significantly deviating from the intended use of proceeds stated in its prospectus. In addition, from 2018 to 2021, the company granted or extended 22 loans totaling approximately 426.5 million yuan. Most of these loans were unsecured. The company did not have sufficient and effective internal control measures to govern its lending activities, and the board of directors did not properly supervise these lending activities until most of them defaulted. Furthermore, four directors, including Liu Zhanxi, Wang Zaicheng, Wu Junjie, and Yao Minru, were found to have not cooperated in the investigation by the Hong Kong Stock Exchange.