HK Stock Market Move | HAICHANG HLDG (02255) surged over 25% in late trading; controlling shareholder Yu Faxiang is under investigation; the company says production and operations are all normal.

HAICHANG HLDG (02255) surged over 25% in late trading. As of press time, it rose 25.66% to HK$0.191, with a turnover of HK$4.813 million. On the news front, HAICHANG HLDG announced that its controlling shareholder, Yu Faxiang, is under investigation by the China Securities Regulatory Commission for suspected personal violations of information disclosure laws and regulations. After making reasonable inquiries, the board stated that the above investigation is unrelated to the group. Yu Faxiang currently does not hold any position in the group and does not participate in the group's daily management and operations. The company said that the group's production and operations are all normal, and the above investigation is not expected to have any material adverse impact on the group's daily operations. It is worth noting that at the end of July, the company announced that Qu Cheng and Xiangyuan Xinghai intended to transfer a total of 21.75% of the shares, with a total consideration of approximately HK$1.114 billion. After completion, Xiangyuan Xinghai officially lost its status as controlling shareholder; Mei Zhiming became the company's second largest shareholder. Public information shows that Mei Zhiming is the co-founder and chief executive officer of investment management and industrial services enterprise GLP, and the founder and chief executive officer of alternative asset management company GLP Capital Partners (GCP).