Prince Group Founder's Kwan Group Faces Delisting by Hong Kong Exchange
AM730 · 1 SOURCESabout 4 hours ago6 MIN
Summary
Kwan Group (stock code 924) announced on Monday (September 28) that the Hong Kong Stock Exchange has decided to delist the company following US sanctions on its major shareholder Chen Zhi (陳志), founder of the Cambodian Prince Group, which has been linked to fraudulent activities. The listing committee determined that sanctions risks have severely impacted the company's business and that Kwan Group failed to demonstrate it remains suitable for continued listing. The stock has been suspended since July 24, 2026, and if no review is requested, the shares will be delisted on October 13.
Key Points
- Chen Zhi, founder and chairman of Prince Group, currently holds a 55% stake in Kwan Group, equivalent to 550 million shares, according to Hong Kong Exchange records
- The Exchange received the listing committee's decision letter on Friday, which cited US sanctions and related sanctions risk as having severely impacted Kwan Group's business operations
- The listing committee concluded that Kwan Group failed to prove it remains suitable for listing and that delisting is appropriate and reasonable under the listing rules
- Kwan Group has been suspended from trading since July 24, 2026 at 1pm and will remain halted until the company issues a resumption announcement addressing the Exchange's requirements
- If Kwan Group decides not to request a review by the Listing Review Committee, the final trading date will be October 12, with delisting taking effect on October 13 at 9am
- The company's board stated it is seeking advice from advisors and considering whether to request that the decision be referred to the Listing Review Committee for further review
Why It Matters
The delisting of Kwan Group underscores the growing intersection between geopolitical sanctions and Hong Kong's listing regime, as authorities increasingly scrutinize companies with connections to sanctioned individuals or entities. For Hong Kong investors, the case highlights the reputational and financial risks of holding stakes in companies linked to sanctioned operators, particularly as US enforcement actions expand globally. The outcome will set a precedent for how the Exchange handles similar cases involving sanctions-related compliance concerns in the future .
The delisting of Kwan Group underscores the growing intersection between geopolitical sanctions and Hong Kong's listing regime, as authorities increasingly scrutinize companies with connections to sanctioned individuals or entities. For Hong Kong investors, the case highlights the reputational and financial risks of holding stakes in companies linked to sanctioned operators, particularly as US enforcement actions expand globally. The outcome will set a precedent for how the Exchange handles similar cases involving sanctions-related compliance concerns in the future .