The SFC investigation says that Wu, in his capacity as the person in charge of corporate finance at China Everbright at the time, "failed to exercise due skill, care and diligence in supervising another responsible officer in the handling of the transfer application". As a result, Tungda's application contained several "major" inaccuracies.
Tungda's application lapsed in April 2004, and its shares were subsequently suspended at the request of the company in July of that year. At the time, HK$98 million worth of Tungda shares were in public hands. The company has not resumed trading.
Wu was licensed under the Securities and Futures Ordinance to deal in securities, advise on securities, and advise on corporate finance. He was accredited with China Everbright until 2005 and is currently not accredited to any licensed corporation.
This is not the first time that working with Tungda has got someone into trouble. Core Pacific-Yamaichi Capital (CPYC) was the sponsor of the company's GEM listing before China Everbright. Last year CPYC was reprimanded by the SFC and fined HK$2.8 million because it, among other things, failed to ensure that the reported sales in Tungda's prospectus were complete and not misleading.
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