SFC suspends dealings in Tianyun International Holdings Limited shares over massive missing corporate funds

The Securities and Futures Commission (SFC) has ordered the suspension of trading in Tianyun International Holdings Limited (Tianyun) shares on the Hong Kong Stock Exchange. The SFC’s action follows an investigation into a suspected fraudulent transfer of funds by a Tianyun subsidiary. The investigation revealed discrepancies in Tianyun’s financial records and raised concerns about the company’s integrity and ability to safeguard assets. The SFC has required Tianyun to take immediate actions to address these concerns, but as the company failed to satisfy the SFC’s requirements, the trading suspension was imposed to protect investors’ interests. The SFC’s investigation found that the alleged transfer of funds never took place, raising suspicions that Tianyun may have fabricated the transfer to conceal irregularities. Moreover, significant discrepancies were discovered between Tianyun’s reported bank balances and independent findings by the SFC, indicating substantial missing funds. These findings have led to doubts about the accuracy of Tianyun’s financial information and the reliability of its internal controls. The SFC has demanded that Tianyun take various measures, including engaging independent consultants and implementing additional control procedures, but as the company has failed to address the concerns adequately, the trading suspension was deemed necessary to maintain market fairness and protect investors. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR67