The new stock was suspended for investigation just 16 days after its listing, with the industry calling the incident unusual, and the stock price has cumulatively fallen over 64%

The new stock market is mixed, and ALSCO POOLING (2649) was suspended less than a month after its listing. It also needs to establish a special committee and appoint an independent forensic investigator to investigate the company's transfer of RMB 73 million just before its listing. Industry insiders believe this is unusual, as listed companies generally need to notify sponsors and auditors of any significant events or contracts before going public. The Hong Kong Stock Exchange responded that it "does not comment on individual companies." Involved in a RMB 73 million transfer Mainland circular packaging service provider ALSCO POOLING was listed on March 9 this year but suddenly announced a suspension on March 30, just 16 days after trading began. The next day, it announced a delay in publishing its annual results. The company stated that it needed additional time to provide the auditor with information regarding a transaction agreement involving a transfer of RMB 73 million to a shell entity between February 24 and 27 this year. On the 9th of this month, ALSCO POOLING announced the establishment of a special committee and the appointment of an independent forensic investigator to conduct an independent investigation. ALSCO POOLING's sponsor is CITIC Securities International, and Ernst & Young serves as the auditor and reporting accountant, assisting in the preparation of financial reports before the listing. The company proposed to appoint Ernst & Young as its first auditor after listing on March 13. Significant transactions generally require disclosure in the prospectus Industry insiders stated that bankers and accountants typically inquire with the management of listed companies whether any significant events or contracts have occurred after the performance period, as significant transactions need to be disclosed in the prospectus. If "management does not disclose and there are no records," they can only review bank statements. However, if it involves mainland banks, the investigation becomes even more complicated. The insider also mentioned that for large transfers, it is necessary to explore the nature of the transaction, whether it is a deposit, expense, or investment; whether the payee is a friend of the management; and whether it involves lending. Additionally, if the transaction does not require board approval, it is necessary to see if there are internal control issues within the board. Sponsors must conduct due diligence before listing Deng Haowei, founding president of the Hong Kong Sponsors Association, stated that sponsors must organize a final confirmation of the prospectus before its official publication, verifying all information with the company to ensure it is accurate, not misleading, and has no significant omissions. Furthermore, a few days before the official listing, they must conduct pre-listing due diligence interviews, focusing on confirming whether there have been any significant changes that could affect investor decisions, such as major transactions, lawsuits, asset changes, or operational abnormalities, from the date of signing the prospectus to the day before listing. Deng Haowei further stated that if a listed company truthfully discloses significant transactions, it must further assess the nature, amount, counterparty background, commercial reasonableness, and the degree of impact on investor decision-making to determine whether additional disclosure or a postponement of the listing is necessary. If the company conceals or denies information, and the sponsor has completed inquiries according to regulations and obtained written confirmation, the primary responsibility for any subsequent issues lies with the listed company itself, not the sponsor. Although ALSCO POOLING was oversubscribed by 5,296.2 times in its public offering, it was still priced at the lower limit of the offering price at HKD 11, and its first-day listing "plunged" by 43.6%. Before the suspension, the stock price closed at HKD 3.9, a cumulative drop of 64.5%, making it the worst-performing new stock listed this year