The company logo of China International Capital Corporation Ltd , China’s first joint venture investment bank, is displayed at a news conference on the company's annual results in Hong Kong, China March 30, 2016. REUTERS/Bobby YipPrevious dealings with Capvision to be reviewed -memoHONG KONG, May 10 - CICC Capital, a unit of leading Chinese investment bank CICC
In an internal memo issued on Tuesday, which was confirmed by sources with direct knowledge, CICC Capital's research division said it would ban all its teams from using Capvision for due diligence-related expert calls and inquiries. CICC Capital's ban on Capvision will come into immediate effect, the memo said, adding its teams should also review previous dealings with Capvision. Its parent CICC was one of the underwriters for Capvision's aborted Hong Kong IPO last year.
Capvision, which runs China's largest expert network group and has offices in eight cities around the world, was singled out in a series of news reports including a 15 minute segment by state broadcaster CCTV on Monday. Due diligence is essential for companies doing business in China, especially after a three-year lockdown under COVID restrictions and a series of U.S. sanctions on Chinese firms and individuals that have unnerved investors.
A source at an Asian fund in Hong Kong said it had put the brakes on all dealings with Capvision after the CCTV report and told staff who ever used the company's services to go through their records and "clean things up as much as possible".
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