TRADEGO (08017.HK): Non-compliant money market fund subscriptions peaked at approximately HKD 75.56 million; remedial actions taken

NewTimeSpace News: On 10 September 2026, TradeGo FinTech Limited (stock code: 08017) announced that, between 8 February 2024 and 18 August 2026, the company made subscriptions and redemptions of the Bosera Money Market Fund offered by Bosera Asset Management (International) Co., Limited through the company's securities account, funded by internal resources and for treasury management purposes.

According to the announcement, the company regularly maintains cash reserves in the securities account of TradeGo Markets Limited, an indirect wholly-owned subsidiary, and idle cash in the account is automatically used before the end of trading each day to subscribe for the money market fund, generating an annualised return of approximately 2.0% to 2.3%, with the relevant cash and investment returns generally available to the group at the start of trading on the next business day. The highest outstanding subscribed value of the money market fund was HKD 75,559,893 on 8 October 2025, with the highest applicable percentage ratio at approximately 33.89%.

The announcement stated that the company had previously considered the arrangement to be substantially the same as placing idle cash in short-term deposits for treasury management and not to constitute a "transaction" under Rule 19.04 of the GEM Listing Rules; following further review with its reporting accountants and external advisers, the company confirmed that, despite the commercial and treasury nature of the arrangement, the subscriptions constitute acquisitions of financial assets and should be regarded as transactions under Chapter 19 of the GEM Listing Rules, with certain subscriptions constituting discloseable or major transactions subject to the relevant reporting, announcement and shareholders' approval requirements. As all outstanding amounts of the money market fund have been redeemed, the company considers that seeking shareholders' approval would serve little purpose and does not intend to despatch any circular or convene any general meeting.

The announcement shows that, as at the date of the announcement, the company held no outstanding investments in the money market fund, and that following the final redemption on 18 August 2026 it received net investment returns of approximately HKD 962,010 from the subscriptions and redemptions. To comply with the GEM Listing Rules, the company has implemented remedial actions, including temporarily suspending subscriptions, establishing dedicated investment compliance guidelines effective 7 September 2026 setting out examples of transactions that may fall under Chapter 19, and adopting a tiered approval regime under which transactions with all applicable percentage ratios below 5% may proceed, those with any applicable ratio of 5% or more but below 25% require board approval, and those of 25% or more require both board and shareholders' approval; the company will also arrange regular training and seek external legal advice where appropriate.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.