HK Stock Market Move | UNITEDENERGY GP(00467) fell more than 10% in the early trading session. The China Securities Regulatory Commission reported that Orient Group Incorporation is suspected of serious financial fraud.

UNITEDENERGY GP (00467) fell more than 10% in the morning session, falling 7.04% as of the publication, trading at HKD 0.33, with a turnover of HKD 30.7825 million. On the news front, according to the interim investigation progress released by the China Securities Regulatory Commission, it has been preliminarily ascertained that the financial information disclosed by Orient Group Incorporation for the years 2020 to 2023 is seriously untrue, suspected of major financial fraud, and may involve significant violations leading to delisting. In addition, UNITEDENERGY GP announced that its wholly-owned subsidiary SSIHL intends to acquire the equity stake of Orient Group Incorporation Beijing Investment Holding. It is reported that Orient Group Incorporation's actual controller Zhang Hongwei once provided a guarantee for a loan of 2.35 billion yuan to Orient Group Incorporation using shares of United Energy as collateral. If the liquidity problems of Orient Financial Company affect the repayment of the loan by Orient Group Incorporation, Zhang Hongwei will use the proceeds from the disposal of the pledged shares to repay the debt. On June 19, 2024, Zhang Hongwei urgently stated that he will raise funds by disposing of assets such as the equity of United Energy and UEP Wind Power under his control to help resolve the liquidity issues of Orient Financial Company and ensure the safety of Orient Group Incorporation's funds. However, as of the evening of December 19, 2024, the controlling shareholder of Orient Group Incorporation, Orient Limited, and its actual controller, Zhang Hongwei, have not fulfilled their commitments to "save the day".