HK SFC raps Citi as widespread IPO crackdown continues

Citigroup has been slapped with a HK$57 million $7.2 million fine over the discharge of its duties as a listing sponsor of China’s Real Gold Mining on the Hong Kong Stock Exchange.

Hong Kong's Securities and Futures Commission SFC said on Thursday its investigation had revealed Citi failed to conduct adequate due diligence on Real Gold’s customers and did not properly supervise the US bank's staff ahead of its initial public offering.

SFC boss Thomas Atkinson has promised he will take bold action against IPO sponsors that put in sub-standard sponsor work. This comes at a time when banks are putting less resources into...