On 22 December 2014, Blues Trust wrote to the Securities and Futures Commission (SFC), the organisation that regulates the financial markets in Hong Kong.
Our letter relates to disclosures of interests made by shareholders of Birmingham International Holdings Limited (BIHL) to the Stock Exchange of Hong Kong Limited (SEHK). We believe that some disclosures may have been filed much later than required by the rules and that others may be inaccurate in terms of the interest declared in the company, i.e. the number of shares held.
The SFC should be concerned if disclosures are materially inaccurate or unduly delayed as this gives a misleading picture of company ownership to potential investors.
We have also raised a related concern that BIHL is not keeping its subsidiary, the club (BCFC), properly informed of changes in BIHL shareholdings, thus resulting in the club publishing inaccurate ownership information and failing to comply with the Publication of Ownership requirements of Football League Regulation 94.
We have asked the SFC to investigate the matters we raise and apply the appropriate remedies and sanctions to ensure that similar problems do not arise with future disclosures. We hope we will see improved practices implemented, not only in disclosures to the Stock Exchange in Hong Kong, but also in reporting by the club under Football League Regulation 94.
You can see the full text of our letter to the SFC here.