The Securities and Futures Commission (SFC) has directed The Stock Exchange of Hong Kong Limited (SEHK) to suspend dealings in the shares of Silver Grant International Holdings Group Limited (Silver Grant) (Stock Code: 00171) under section 8(1) of the Securities and Futures (Stock Market Listing) Rules (SMLR) with effect from 9:00 a.m. on 25 September 2026 (Note 1).
The SFC’s action arose from its investigation into numerous unsecured loans granted by Silver Grant totalling approximately $2 billion (Loans) between March 2021 and December 2023.
The SFC’s investigation has uncovered information suggesting that over $1 billion, or about 63% of the Loans, was indirectly remitted to Silver Grant’s then-major shareholder or its related party through a series of rapid onward transfers. This raises serious questions as to whether the purported borrowers were the genuine beneficiaries of the Loans and whether the Loans served any genuine commercial purpose.
The SFC’s investigation also found evidence suggesting that the due diligence reviews and credit assessments conducted by Silver Grant in relation to the Loans were insufficient.
The serious concerns arising from the evidence uncovered during the SFC’s investigation were put to Silver Grant to give the company an opportunity to address them. However, Silver Grant failed to address the SFC’s concerns satisfactorily. In particular, the company failed to provide explanations on the commercial rationale for granting the Loans.
Given the significance of the SFC’s concerns in relation to the financial position of Silver Grant, the SFC considers that suspending dealings in Silver Grant’s shares is necessary or expedient to maintain an orderly and fair market and to protect the interests of the investing public.
The SFC’s investigation is ongoing.
Notes:
- Under section 8(1) of the SMLR, the SFC has the power to direct the SEHK to suspend dealings in shares of a listed company where:
a. any materially false, incomplete or misleading information has been included in any document issued in connection with a listing of securities or in announcement, statement, circular or other document made or issued by it or on its behalf;
b. it is necessary or expedient in the interest of maintaining an orderly and fair market in securities traded on the SEHK;
c. it is in the interest of the investing public or in the public interest, or it is appropriate for the protection of investors generally or for the protection of investors in the shares of the listed company; or
d. there has been a failure to comply with any condition imposed by the board of the SFC when permitting resumption of trading under section 9(3)(c) of the SMLR.
