Hong Kong stock exchange decision to delist Superb Summit triggers High Court challenge
- Chinese firm seeks judicial review of stock exchange decision to remove it from the bourse
- Decision made following report from American researchers accusing Superb Summit of fabricating revenue
A Chinese timber company has launched a legal battle against the Hong Kong stock exchange in a bid to remain listed on the bourse.
But Superb Summit has applied for judicial review to save its listing, accusing the city’s stock exchange of failing to take into account the “exceptional circumstances in Hong Kong during the second half of 2019” before deciding last November to remove the company from the main board.
The exchange was also accused of failing in its duty to give adequate reasons for the move after relying on the report from Muddy Waters LLC, which the Chinese company believed had a conflict of interest because it intended to short-sell its shares.
Superb Summit is now seeking an order from the High Court in Hong Kong to quash the decision to cancel its listing, as well as an interim order to put its delisting on hold until the judicial review application is determined, according to a notice filed last month and made available on Tuesday.
The exchange has yet to announce the cancellation of the company’s listing in light of the expected legal challenge.
Superb Summit had initially halted its trading on November 20, 2014 after Muddy Waters accused the Chinese company of fabricating its revenue following years of failing business.
Some allegations later became the subject of an investigation by the Securities and Futures Commission, which, in a rare move, directed Superb Summit to suspend its trading from December 15, 2015.
