The Jiangsu Securities Regulatory Bureau warned of the risks of domestic companies using Hong Kong's "fake stock exchange" to conduct illegal fundraising.

CoinFeed reported on April 10 that the Jiangsu Securities Regulatory Bureau recently issued a risk warning, stating that some illegal intermediaries are claiming that domestic companies can "list and ring the gong" on the Hong Kong Stock Exchange by paying fees, and providing "listing" services such as stock codes and website announcements. However, these platforms are mostly "fake exchanges," using methods such as highly imitated official websites and fake gong-ringing ceremonies to package a false listing. Some companies listed on these "fake exchanges" are taking the opportunity to promote their shares or so-called "pre-IPO shares" to the public, which is suspected of being illegal fundraising. The regulatory authorities remind investors to verify the qualifications of licensed institutions through the Hong Kong Securities and Futures Commission (SFC) website, not to easily believe in claims of "guaranteed principal and high returns" or "internal pre-IPO shares," and not to transfer money to private accounts or unofficial platforms. If any clues of suspected illegal fundraising are discovered, they should be reported to the local authorities or the police as required.