Hong Kong Investigates CLSA Bond Deal After Investor Complaints

Hong Kong’s securities regulator is investigating allegations that CLSA Ltd. misled investors in its role as bond underwriter for a Chinese energy conglomerate that ended up in bankruptcy, according to people familiar with the matter.

The Securities and Futures Commission’s enforcement division recently began looking into the case after complaints from bondholders, the people said, asking not to be identified discussing private information.

It’s unclear whether the SFC has any evidence of wrongdoing by CLSA, which is based in Hong Kong and controlled by state-owned Chinese brokerage Citic Securities Co.

The allegations stem from a 2016 dollar bond sale ...