Hong Kong Securities Regulator Investigates Equity Distribution of Guofu Innovation

According to Odaily, the Hong Kong Securities and Futures Commission (SFC) has recently conducted an investigation into the equity distribution of Guofu Innovation. The findings reveal that as of August 9, 2023, the company's 20 shareholders collectively hold over 3.55 billion shares, representing 49.93% of the issued share capital. Additionally, three major shareholders of the company possess more than 2.89 billion shares, accounting for 40.62% of the issued share capital. Combined, these holdings amount to 90.55% of Guofu Innovation's issued share capital. The SFC highlighted that the high concentration of equity among a small number of shareholders could lead to significant price volatility even with minimal trading activity. The regulator advised shareholders and potential investors to exercise caution when trading the company's shares. Last month, Guofu Innovation announced that its wholly-owned subsidiary, Fuqiang Securities, had received approval from the SFC to offer virtual asset trading services to professional investor clients through a licensed platform maintained by the SFC.