Analystsassert that a shell company may be valued at HK$600M.
As the number of HongKong-listed companies acquired by Chinese mainland investors climbs to a newhigh, Hong Kong officials try to stop such acquisitions for fear of market manipulationor turmoil.
Earlierinvestigations have shown that during 2013-2015, the market capitalization of56 Hong Kong-listed companies surged up by more than ten times within sixmonths, even including 39 companies in the red. The Securities and FuturesCommission thus conducted investigations about the link between the risingstock prices and so-called back-door listing.
Stockexchange officials said the sharp fluctuations of stock prices brought byreverse merger often lead to market distortion and help buyers evade thereviews required in IPO. According to Bloomberg data, 2015 saw 45 Hong Kong-listedcompanies completing the changes in ownership through selling majority stake,hitting a record high.