Market Turnover


Exchange’s Disciplinary Action Against Great Wall Terroir Holdings Limited (Stock Code: 524) and Eleven Directors

15 Jun 2022

(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)


The Stock Exchange of Hong Kong Limited

(1) Great Wall Terroir Holdings Limited (Stock Code: 524);
(2) Mr Yeung Chun Wai Anthony, former executive director, Chairman and Chief Executive Officer;
(3) Mr Yeung Chun Sing Standly, former executive director;
(4) Ms Li Bing, former executive director and Chief Executive Officer;
(5) Mr Cheung Ka Heng Frankie, former executive director and non-executive director;
(6) Mr Zhao Rui Yong, former executive director, non-executive director and Chairman;
(7) Mr Zhao Guang Ming, former independent non-executive director;
(8) Mr Fung Wai Shing, former independent non-executive director;
(9) Mr Huang Tao, former independent non-executive director;

(10) Mr Chan Chi Yuen, former executive director;
(11) Mr Wong Xiang Hong, former executive director; and
(12) Mr Fung Chan Man Alex, former independent non-executive director.

the relevant directors to attend training.


Between 2016 and 2019, a subsidiary of the Company entered into a number of notifiable and connected transactions. These transactions, including the provision of financial assistance in the form of loans and advances to the subsidiary’s own directors, were carried out without the board of directors of the Company being explicitly informed. The Company did not comply with the relevant Listing Rules, and a sum of nearly RMB 50 million in respect of the loans and advances had to be fully impaired.

The board of directors of the Company failed to adequately supervise the affairs of the subsidiary.  The directors of the subsidiary were entrusted with its day-to-day operation, but no checks and balances were put in place to guard against their possible abuse of powers. The relevant directors of the Company also failed to take effective remedial actions to improve the supervision of the subsidiary after the Rule breaches were discovered. 

Key Messages:

The board of directors of an issuer is responsible for the management and operations of the issuer’s group. They must ensure that a proper internal control and risk management framework extends to and encompasses the issuer’s subsidiaries.  The board must also adequately supervise the activities and financial affairs of subsidiaries.  A proper mechanism of checks and balances is an essential component of an effective internal control system. 

A copy of the Statement of Disciplinary Action is available on the HKEX website. 



Updated 15 Jun 2022