KVB Kunlun, a foreign exchange (forex) broker based in Hong Kong, announced this Monday that it has stopped the trading of shares of the company since 9:00 am this morning, in anticipation of the firm announcing the resignation of its Chief Executive Officer (CEO).
Specifically, the statement said: “At the request of KVB Kunlun Financial Group Limited (the “Company”), trading in shares of the Company will be halted with effect from 9:00 a.m. on 29 July 2019 pending the release of an announcement in relation the resignation of an executive director who is also the chief executive officer and an authorised representative of the Company, which constitutes inside information of the Company.”
It appears that the resignation is in relation to Stefan Liu, who is the CEO of the retail FX broker. Finance Magnates has reached out to the firm for confirmation; however, as of the time of publishing, we have not yet received a response.
At the bottom of the statement, the company outlines the current executive directors, which does not include Liu. The current executive directors are Yuan Feng (Deputy Chief Executive Officer), Huang Songyuan and Wong Yiu Kit, Ernest (Chief Financial Officer), the broker said.
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Stefan Liu joined KVB Kunlun in 2001
Liu first joined KVB Kunlun back in 2001. After five years with the company, he was appointed as the managing director of the Group in March 2006. In 2010 he became a Director of the company and later in 2011, he was named as the country manager of New Zealand and Australia.
Before he was working for the Hong Kong-based broker, Liu was the managing director of Aiming International (New Zealand) Co. Limited, a position he held from August 1997 until 2001, his biography on KVB’s website states.
Today’s announcement follows on from the broker issuing a profit warning back in April. As Finance Magnates reported, senior executives at the firm released a statement saying that they expect “a substantial loss” for the first quarter of this year.
The company attributed the reason for the drop in profits to fair value loss on the embedded derivative portion of some bonds that were issued in February of 2018. On top of that, KVB Kunlun claimed that there had been an increase in the financing costs associated with those bonds.
In addition, lower leveraged trading volumes, in both the forex and other markets, also had a negative impact on the firm.