SFC, Hong Kong stock exchange take action against FingerTango, a Chinese gaming firm
SFC, exchange say actions by company and directors resulted in losses of US$85 million
The former directors of FingerTango, a Guangzhou-based mobile video gaming company, face disciplinary actions for misconduct and breach of duty from the SFC and the exchange over the misuse of listing proceeds after the company went public in 2018.
Investigations conducted by the SFC and exchange found that the listing’s proceeds were put into a wealth-management product, which was not disclosed in a prospectus at the time.
The former directors also approved loans to external parties, a substantial portion of which went into default, resulting in losses for FingerTango and its subsidiaries of more than HK$660 million, they said.
The SFC is also seeking disqualification and compensation orders from the Court of First Instance (CFI) for the same alleged misconduct.
“Corporate directors, including independent non-executive directors, tasked with the governance of a corporation, have the obligation to oversee the activities of management and ensure that adequate internal control policies and procedures are established and operate effectively,” Christopher Wilson, the SFC’s executive director of enforcement, said in a statement.
“Adopting a lax policy which would relieve directors from overseeing important decisions is not an excuse to alleviate directors’ responsibility.”
