ICEA CAPITAL LIMITED 工商東亞融資有限公司

If you've ever wondered how some sponsors get to the required number of public shareholders for a listing, this ruling spells it out. 87 retail "clients" at the Wanchai Branch of ICEA Securities subscribed in the placing of Lang Chao (now Inspur, 0596) and then sold 8,712,000 shares for $0.005 more than the IPO price of $0.36 on the first day, to a company owned by the sponsor. The allotment results showed only 116 placees in total.

The SFC complained yesterday about deteriorating standards of sponsors' work in listing applications. Some of the blame lies with the SFC for abandoning in 2006 proposals to reform the law on prospectus liability. Until investors can effectively sue for a fraudulent prospectus, creating a stronger deterrent, the situation is unlikely to improve.

Note: the only IPO sponsored by ICEA Capital in 2004 was Lang Chao International Ltd (then 8141, now Inspur International Ltd, 0596).

Note: the only IPO sponsored by ICEA Capital in 2004 was Lang Chao International Ltd (then 8141, now Inspur International Ltd, 0596)

We look at the latest action by the SFC against ICEA, the second in three years, and also at the complicated structure of state-controlled banking giant ICBC in Hong Kong.

"These letters demonstrate the deviousness of the defendant's character".