Rapid Innovation Hong Kong Stock IPO allocation result announcement contains multiple disclosure errors; China International Capital Corporation, CICC - China International Capital Corporation, CITIC Securities, China Merchants Securities, and several intermediaries failed to pass their reviews.

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Produced by: Sina Finance Listed Company Research Institute

Author: Happy

Recently, Feisu Innovation (3355.HK) issued a clarification announcement after discovering multiple core errors in the IPO allotment result announcement for Hong Kong stocks, which was only published on the fifth trading day after listing, sparking market attention. Industry insiders have bluntly stated, “Since the opening of Hong Kong, I have never seen such serious and low-level mistakes.” This incident not only directly targets the three joint sponsors but also exposes flaws in risk control across multiple stages of IPO information disclosure, including data provision, legal review, and final approval. The collective failure of intermediary agencies to perform their duties has become evident.

The preparation and disclosure of the IPO allotment result announcement for Hong Kong stocks require multiple professional intermediary agencies to review and verify layer by layer, jointly building a core risk control line to ensure the accuracy and authenticity of the announcement information. The joint sponsors of Feisu Innovation’s Hong Kong IPO—CICC, CITIC Construction Investment International, and China Merchants Securities International—are responsible for coordinating the listing application, supervising issuer information disclosure, verifying the authenticity, accuracy, and completeness of all public documents, and other core duties as the primary responsible persons for the IPO.

In addition to the sponsors, the allotment result announcement also involves two core legal intermediaries—Gaowei Shen Law Firm representing the issuer’s offshore legal counsel and Sirida Law Firm representing the underwriters. These two law firms provide full-process legal services for the issuer and underwriters. The compliance of the announcement content, consistency of data standards, and rigor of document preparation all fall within their core review responsibilities. Together with the sponsors, they form the core review stage of the announcement disclosure, which requires mutual verification and confirmation before the announcement can be released.

It is reported that Feisu Innovation’s corrected allotment result announcement contains three key errors, each linked to different responsible parties’ lapses:

1. Discrepancies in core data disclosure for Group B of Hong Kong public offering: The subscription application statistics and share allocation calculations for this Hong Kong public offering were provided by Tricor. As the share registration and IPO distribution service provider, Tricor is not only the source of some core data in this announcement but also bears fundamental verification responsibilities for the data standards and calculation results related to allotment. They are not entirely exempt from review obligations for the final announcement. Moreover, subsequent review entities failed to detect the issues in a timely manner, and all parties bear corresponding responsibilities;

2. Errors in the disclosure of share distribution information to related distributors: China International Capital Corporation Hong Kong Securities Limited, as a related distributor, provided incorrect information about the distribution of shares to related clients. This data was supplied by CICC itself, which, as the core review entity, failed to effectively verify its own data, making it the primary responsible party for this error;

3. Errors in the disclosure of public shareholding and free float: The “Public Shareholding and Free Float” section in the announcement contains two major issues: first, an incorrect reference to the listing rules of the Hong Kong Stock Exchange; although this content was clearly stated in the prospectus, it was not accurately carried over into the announcement. Second, there was a lack of key information disclosure, reflecting a misunderstanding or serious oversight by intermediary participants regarding the disclosure requirements of the allotment results. The three joint sponsors, Gaowei Shen Law Firm, and Sirida Law Firm all failed to perform review duties, resulting in a significant gap in the core review process.

A compliant and accurate allotment result announcement must go through multiple procedures, including data provision, document drafting, multi-party review, and final confirmation. Sponsors, issuer’s lawyers, sponsor’s lawyers, and data providers all participate deeply, forming multiple layers of risk control. The errors in Feisu Innovation’s announcement, only corrected five days after listing, indicate that all stages had obvious lapses in key data verification, and the cross-checking mechanisms among entities failed completely, rendering multiple review systems ineffective.

It is noteworthy that Feisu Innovation’s clarification announcement was issued solely by the issuer with a signature, and all related entities involved—joint sponsors, legal intermediaries, data sources—did not make any statement or assume responsibility in the announcement. This collective “invisibility” further raises market doubts about the professionalism and responsibility of intermediary agencies.

In fact, this is not the first case of IPO allotment announcement errors in the Hong Kong market this year. Since 2026, three other new stocks—Feisu Innovation, Biren Technology, and Youlesai Sharing—have issued clarification announcements regarding their allotment results. Among them, Youlesai Sharing only had one error related to share count, while Feisu Innovation and Biren Technology both had multiple core content errors. Biren Technology even had omissions in five key sections, including allotment details and underwriter concentration analysis. Both companies with serious announcement errors had joint sponsors including CICC.

As a leading institution in the Hong Kong IPO market, CICC has maintained a top position in terms of project numbers and underwriting scale in recent years. However, while expanding rapidly, project quality has declined significantly. This year, two IPOs involved serious announcement errors, exposing internal review process flaws and resource allocation issues.

Previously, the Stock Exchange of Hong Kong had explicitly limited the number of active IPO projects a signing sponsor could promote simultaneously to no more than six (up to five). This regulation was aimed at addressing the decline in professional quality caused by some institutions handling too many projects and dispersing review resources. CICC’s consecutive review failures may be directly related to the surge in project volume and internal risk control resource imbalance.

The Hong Kong Securities and Futures Commission is currently tightening IPO intermediary supervision. Earlier this year, it issued a circular emphasizing serious concerns over deficiencies in listing document preparation, sponsor misconduct, and resource mismanagement in new stock offerings, strengthening oversight of sponsors and intermediaries’ due diligence, document preparation, and verification obligations. The rare errors in Feisu Innovation’s announcement will likely continue to draw regulatory attention to CICC and related intermediaries, and may prompt regulators to further clarify responsibilities at each IPO stage, reinforcing the gatekeeping duties of sponsors, law firms, and data service providers.

As of now, CICC, CITIC Construction Investment International, and China Merchants Securities International, along with Gaowei Shen Law Firm, Sirida Law Firm, and Tricor, have not publicly responded to the errors in this announcement. The market expects these parties to quickly investigate, clarify, and fulfill their responsibilities.