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Peggy Ye

Zoe SL Chan

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.
The SFC said the action was necessary and in the interest of investors and the public, adding that its investigation was ongoing.
The move comes as Hong Kong’s IPO market rebounds sharply after years of weak activity. More than 80 companies completed listings in the first half of 2026, while more than 430 applicants are in the pipeline.
The surge has prompted authorities to strengthen checks across the regulatory landscape. Earlier this year, the SFC ordered 13 investment banks to review their vetting procedures and staffing after uncovering deficiencies in IPO documents.
The Accounting and Financial Reporting Council (AFRC) has also pledged tougher inspections of newly listed companies and auditors, warning that rapid growth must not compromise financial reporting standards.
The latest intervention follows a series of penalties targeting licensed firms.
The SFC last week reprimanded and fined Luk Fook Securities (Hong Kong) HK$2.1 million over cybersecurity weaknesses, while China Industrial Securities International Asset Management and Bright Smart Securities International (HK) were fined HK$6.8 million and HK$2.8 million respectively for compliance failures, according to its website.


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Regulator action comes amid broader push to strengthen IPO safeguards after rapid market recovery


Regulator action comes amid broader push to strengthen IPO safeguards after rapid market recovery.


Hong Kong regulators freeze US$15.9 million linked to suspected IPO fraud

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Regulator action comes amid broader push to strengthen IPO safeguards after rapid market recovery

Regulator action comes amid broader push to strengthen IPO safeguards after rapid market recovery