3.6万 yuan counterfeit IPO "one-stop shop" fake exchange undercurrent strikes Hong Kong again

Financial Times Reporter Wu Shun

Since 2025, the IPO market in Hong Kong has been booming, with fundraising topping the global rankings, and the trading hall of the Hong Kong Stock Exchange is constantly ringing with gongs. Against this backdrop, the business of listing on so-called “pseudo exchanges” in Hong Kong has surged again. Some companies are taking advantage of this trend to participate in so-called “listing” and “gong-ringing” ceremonies.

It is worth noting that these “pseudo exchanges” highly imitate and “copy” legitimate exchanges, creating convincing websites with beautiful designs to simulate authenticity, which is highly confusing for ordinary investors. Meanwhile, companies that “list” on these “pseudo exchanges” often use the opportunity to promote their equity or so-called “original shares,” hiding numerous investment risks.

36,000 Yuan Can Fake a One-Stop IPO

In mid-March, a reporter from the Securities Times contacted an intermediary who claimed to facilitate listings on Hong Kong “pseudo exchanges.” He said that for only 36,000 yuan, a company could be “listed” and “gong-rung” in Hong Kong, with services including stock code assignment, website publicity, and a full package of “listing” services. “We held a listing and gong-ringing ceremony in Shenzhen on March 28. You can provide a list of 6 to 8 participants, and we will handle the arrangements, record videos on-site, conduct interviews, and edit a professional promotional video,” the intermediary claimed.

According to reports, this intermediary was promoting a website service called the “Hong Kong Equity Trading Display Center.” The Securities Times found that since 2026, seven companies have been “listed” on this center, and over 130 companies had “listed” in 2025.

The website claims to be officially approved by the Hong Kong SAR government and mainly provides professional international capital services for small and medium-sized enterprises (non-listed) in Hong Kong and mainland China, including listing, financial advisory, and listing consultation. The platform aims to help SMEs enhance competitiveness and optimize industrial structure by providing branding, compliance training, and listing display services based on Hong Kong and local laws, accelerating their growth and eventually entering the global capital markets suitable for their development stage.

Some intermediaries claim: “By listing on the Hong Kong Equity Trading Display Center, companies can access more funding, inject new vitality into their development, and improve brand awareness and market competitiveness, attracting more investors and partners. It provides a broad platform for companies to showcase their strength, expand financing channels, and enhance brand influence.”

The so-called review process for listing on the “Hong Kong Equity Trading Display Center” is a mere formality—just fill out a simple application form, provide company and legal representative information, and sign a commitment letter. The intermediary said that after submitting the information and paying the relevant fees, they could provide a stock code and website display within three to five working days.

A company that was listed on this website in 2025 even posted a gong-ringing video. The video showed that the listing, gong-ringing, and speech segments were complete replicas of the official gong-ringing ceremony of a legitimate exchange, a “high-fidelity imitation”: seven or eight company personnel wearing red scarves gathered around a copper gong, ringing it and taking photos, while the company’s leader delivered a speech excitedly, claiming the company had entered a new development stage.

The listing fee on this website varies—some intermediaries say 36,000 yuan, others say 48,000 yuan. The “Hong Kong Equity Trading Display Center” states on its website that it does not directly accept listing applications from companies without recommendation from member organizations, and the fees for consulting services from recommended members are set by the level of value-added services provided.

Multiple Fake “Copycat” Sites Imitating Legitimate Exchanges

There are many such “fake” websites like the “Hong Kong Equity Trading Display Center.” The Securities Times found others such as the “Hong Kong Global Equity Trading Center,” “Hong Kong Science and Technology Innovation Equity Transfer Market,” and “Hong Kong Equity Trading Center.” These “pseudo exchanges” often imitate the logos and names of Hong Kong Exchanges or mainland Chinese exchanges.

For example, the “Hong Kong Equity Trading Center” calls its listing board the “Chuangke Board,” directly copying the STAR Market of the Shanghai Stock Exchange, with the English abbreviation “HKEE,” which is easily confused with HKEX, the Hong Kong Stock Exchange. The “Hong Kong Global Equity Trading Center” mimics the HKEX logo’s blue and red color scheme, and its listing sections include “Science and Technology Innovation Board,” “Innovation Board,” and “International Board.”

These “pseudo exchanges” also provide opportunities for illegal fundraising and selling of so-called original shares, hiding significant risks. Some companies openly claim to be “listed.”

However, when the Securities Times asked whether listing on the “Hong Kong Equity Trading Display Center” equates to “going public,” the intermediary straightforwardly said: “This is not a listing; companies must go through steps. After listing, you can say you’re closer to the capital market.”

Many intermediaries promote that after listing, a company’s value can be “liquidated”: “Small and micro enterprises face long-term financing difficulties—bank loans have high requirements, private lending costs are high, and the domestic capital market has high thresholds and fees. After listing, companies can raise funds through private equity or private bonds; their shares can be legally bought and sold, allowing partial realization of equity.”

In fact, the “Hong Kong Equity Trading Display Center” explicitly requires companies before listing to sign a commitment that they will not use terms like “listed,” “stock code,” or “equity code” in their publicity, nor engage in illegal activities such as “original shares” or “equity crowdfunding” for illegal fundraising or fraud. The website also disclosed that due to multiple complaints, several companies suspected of private or illegal financing had been delisted. Many companies listed there are using this as a cover for illegal fundraising or selling original shares. The “Hong Kong Global Equity Trading Center” website even publishes the equity financing needs of listed companies, with amounts ranging from one million to several million yuan.

Beware of “Equity” Investment Risks

It is important to note that most of these “pseudo exchanges” have been listed by the Hong Kong Securities and Futures Commission (SFC) as “fictitious regulatory agencies or market operators” several years ago.

The SFC states that setting up fake regulatory or market operator websites is a common scam tactic aimed at deceiving unsuspecting investors into believing that the listed entities are regulated by real authorities. In reality, these financial institutions have never been recognized by any genuine regulatory body. Scammers may claim to conduct transactions through recognized market operators (such as stock exchanges) to deceive investors. These websites are often beautifully designed, loaded with the latest financial news, creating a false sense of legitimacy, but the actual regulatory or market operation entities do not exist.

Zhejiang Baihe Law Firm’s full-time lawyer Jiang Huaqin told the Securities Times that mainland companies paying unlicensed institutions in Hong Kong for “listing” or “going public” and then selling original shares clearly constitute false statements and illegal securities issuance under the Securities Law. The involved unlicensed institutions, companies, and responsible persons may face criminal charges such as illegal operation and fraud. Third-party organizations or individuals assisting “pseudo exchanges” in promoting or recruiting mainland companies for listing may be jointly liable for infringement and compensation, and may also be criminally liable for illegal operation or fraud, or as accomplices in aiding and abetting.

Lawyer Xu Yuehui from Guangdong Huanyu Jingmao Law Firm pointed out that, according to the Securities Law, unlicensed institutions lack the qualification for securities issuance and trading. Selling original shares to the public or raising funds under the guise of listing without registration constitutes illegal securities issuance. If they falsely claim to be listed or fake listings with the intent to defraud investors and embezzle or squander the funds, it constitutes a criminal offense of illegal fundraising. Therefore, the above behaviors by mainland companies may involve crimes such as illegal operation or fraud.

“Overseas listing is ultimately a company’s golden business card, but scammers exploit this desire for gilding to set traps. To prevent such ‘overseas listing’ scams, first verify credentials—mainland companies must be registered with the CSRC and approved by the Hong Kong Stock Exchange. Second, beware of tempting phrases like ‘fast listing,’ ‘no threshold,’ ‘high returns,’ and ‘original shares.’ Third, verify documents—companies can check the authenticity of their documents on the official websites of the Hong Kong Stock Exchange and the CSRC. Fourth, refuse private transactions—stock trading must occur through legitimate securities accounts. Most importantly, keep evidence—save all promotional materials, contracts, transfer records, chat logs, etc., to facilitate future rights protection,” Jiang Huaqin advised.

Xu Yuehui reminded that if investors suffer losses due to false listing promotions, the involved companies should bear liability for false statements. Investors can sue in mainland courts; the Beijing Financial Court has already set a precedent for jurisdiction over such cross-border fraud cases. “For such scams, investors should not trust ‘overseas listing’ propaganda blindly. Be highly alert to investment opportunities requiring the purchase of original shares, and strictly adhere to the bottom line of ‘no license, no investment; no registration, no purchase.’”