Hong Kong SFC Suspends Yinnan International Trading Over HK$1 Billion Loan Concerns
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The Hong Kong Securities and Futures Commission (SFC) has ordered the suspension of trading in shares of Silver Grant International Holdings Group (stock code 00171) effective September 25, 2026. The SFC's investigation into unsecured loans totaling approximately HK$2 billion, granted between March 2021 and December 2023, revealed that over HK$1 billion (about 63% of the total) was indirectly transferred to the company's then-major shareholder or its connected parties through a series of rapid subsequent transfers. The SFC stated this raises serious questions about whether the declared borrowers were the true beneficiaries and whether the loans had any genuine commercial purpose. The investigation also found insufficient due diligence and credit assessment by Silver Grant. The company failed to provide a satisfactory explanation for the loans' commercial rationale. The SFC deemed the suspension necessary for maintaining an orderly and fair market and protecting investor interests. The investigation is ongoing.
Source report
Hong Kong, September 25 – The Securities and Futures Commission (SFC) of Hong Kong announced today that it has directed the Hong Kong Stock Exchange to suspend trading in shares of Yinjian International Holdings Group Limited (Yinjian International, stock code: 00171), effective from 9:00 a.m. on September 25, 2026.
The directive was issued under Section 8(1) of the Securities and Futures (Stock Market Listing) Rules.
Background of the Investigation
The SFC's action stems from an investigation into a series of unsecured loans totaling approximately HK$2 billion, which Yinjian International granted between March 2021 and December 2023.
Key Findings from the SFC Investigation
- Funds diverted to major shareholders: Over HK$1 billion—representing approximately 63% of the total loan amount—was indirectly transferred to Yinjian International's then-major shareholders or their connected parties through a series of rapid subsequent transfers.
- Questionable commercial purpose: The findings raise serious doubts about whether the declared borrowers were the true beneficiaries of the loans, and whether the loans served any genuine commercial purpose.
- Inadequate due diligence: Evidence suggests that Yinjian International's due diligence and credit assessments conducted in relation to these loans were insufficient.
Company Response
The SFC presented its concerns to Yinjian International, allowing the company an opportunity to respond. However, the company failed to satisfactorily address the SFC's concerns. In particular, it did not provide an explanation for the commercial rationale behind granting the loans.
Rationale for Suspension
Given the seriousness of the concerns regarding Yinjian International's financial condition, the SFC considers it necessary and appropriate to suspend trading in the company's shares in order to maintain an orderly and fair market and to protect the interests of the investing public.
Ongoing Investigation
The SFC's investigation remains ongoing.
Source
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