CLSA Premium to suspend margin dealing business
Hong Kong-focused Forex broker CLSA Premium Ltd (HKG:6877) today provided a business update.
The brokerage stated that since it launched the initial exploration into the healthcare business in mid-2022, the Group has generally seen positive outcome.
In the first quarter of 2023, large majority of the Group’s revenue and profit were contributed by the healthcare business.
Furthermore, the Board considered there to be limited prospect for the Group’s margin dealing and the bullion trading business to obtain new clients and to improve its performance. On that basis, the Board considered that the resources and effort deployed in the Margin Dealing Business could potentially be better utilized in the healthcare business, and has decided to suspend the operation of the Margin Dealing Business.
Trading in the shares of CLSA Premium has been suspended with effect from 9:00 a.m. on Tuesday, 25 April 2023 and will remain suspended until further notice.
The Stock Exchange has considered the broker operates the business of provision of leveraged foreign exchange, commodities and index trading services in Australia, New Zealand and Hong Kong since listing and sale of Chinese and Japanese medicines products and healthcare products in the PRC and Hong Kong since May 2022, each of which is not demonstrated to be of substance, viable and sustainable.
Since business deterioration in 2019, none of the business plans has succeeded in improving the scale and profitability of the Margin Dealing Business. In 2022, the operation in New Zealand and Australia ceased/was suspended.