The Securities and Futures Commission (SFC) has fined Value Partners, Hong Kong's first listed asset manager, 4 million Hong Kong dollars ($520,000) for mismanaging two of its funds.
The commission, which regulates financial activity in the territory, found that the firm's China Greenchip Fund and Greater China High Yield Income Fund had each issued shares in excess of their authorised share capital.
“The SFC considers the incidents serious as they called into question the validity of the shares issued to investors of the funds,” said a statement from the regulator.
Value Partners did not report the mismanagement to the commission until six months after it was uncovered. However, the regulator said Value Partners cooperated with its investigation, which found no apparent investor losses. Value Partners has since contracted an independent reviewer to assess its internal control systems.
Founded in 1993, Value Partners had $13 billion under management at the end of last year. It listed on the Hong Kong Stock Exchange in November 2007.
In December, Value Partners named
King Lun Au, formerly of Eastspring Investments, as chief executive.
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