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Enoch Yiu

Hong Kong’s Securities and Futures Commission (SFC) has directed the stock exchange to suspend trading of US-based biotech firm Cloudbreak Pharma pending an investigation into its US$78 million initial public offering (IPO) last year.
“The SFC has serious concerns that Cloudbreak’s initial public offering may have been rigged to create an artificial impression of demand for Cloudbreak’s shares,” the SFC said in a statement on Thursday.
The regulator considered the suspension “necessary or expedient to maintain an orderly and fair market” for the firm’s shares and to “protect the interests of the investing public”, it added.
Cloudbreak, a biotechnology firm focused on treatments for people suffering from eye diseases, raised HK$611.88 million (US$78.45 million) in its IPO in late June 2025.
The IPO’s retail portion was oversubscribed by 77 times, attracting 29,007 retail investors. Its international offering tranche, however, was not popular, with only 168 investors subscribing to an amount equal to 89 per cent of its offering, according to the company’s announcement at the time of the listing.
The company’s share price dropped 39 per cent on the first day of trading, and has lost more than 90 per cent from its IPO price of HK$10.10, closing at HK$1.19 on Wednesday. The shares were suspended at 9am on Thursday, before the market opened.
Cloudbreak’s founder and CEO Ni Jinsong formed the company in California in 2015 after some 20 years working for pharmaceutical giants Pfizer and Allergan, according to the company’s information.

The company’s Hong Kong listing came under it Chapter 18A rules, which are designed for pre-revenue biotech companies. Introduced in 2018, the rules have helped Hong Kong become one of the world’s biggest fundraising hubs for biotech firms.
Under Hong Kong securities regulations, the SFC has the power to direct the stock exchange to suspend trading of a listed company’s shares when the regulator alleges any materially false or misleading information issued by the companies, or if it finds a suspension is necessary to maintain orderly and fair trading and to protect investors.


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Regulator cites ‘serious concerns’ about ‘artificial impression of demand’ in US-based company’s US$78 million listing in 2025


Regulator cites ‘serious concerns’ about ‘artificial impression of demand’ in US-based company’s US$78 million listing in 2025.


Hong Kong watchdog investigates Cloudbreak Pharma for ‘rigged’ IPO, suspends its shares

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Regulator cites ‘serious concerns’ about ‘artificial impression of demand’ in US-based company’s US$78 million listing in 2025

Regulator cites ‘serious concerns’ about ‘artificial impression of demand’ in US-based company’s US$78 million listing in 2025