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Hong Kong regulators freeze US$15.9 million linked to suspected IPO fraud
Regulator action comes amid broader push to strengthen IPO safeguards after rapid market recovery
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Peggy YeandZoe SL ChanPublished: 6:44pm, 30 Jul 2026Updated: 6:46pm, 30 Jul 2026
Hong Kong’s securities regulator has frozen more than HK$125 million (US$15.9 million) in assets linked to a suspected market manipulation scheme, as authorities tighten oversight of the city’s booming IPO market.
The Securities and Futures Commission (SFC) said on Thursday that it had issued a restriction notice to Futu, prohibiting the brokerage from dealing with or processing up to HK$125.247 million in assets held by an entity suspected of creating artificial demand for shares in an initial public offering.
The regulator did not identify the entity involved or provide details of the listing in question.
Under the order, Futu cannot dispose of, transfer or otherwise deal with the assets, or assist another person in doing so, without the SFC’s prior written consent.
The regulator stressed that Futu was not the subject of its investigation and that the restriction did not affect the broker or its other clients.
Futu did not immediately respond to a request for comment.
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