Investment firm braces for legal battle in Hong Kong

Hong Kong's securities regulator filed a suit against CITIC Ltd, an arm of China's biggest diversified company, and five former directors for allegedly disclosing false or misleading information over losses in 2008.

The Securities and Futures Commission is seeking sanctions against former chairman Larry Yung, former managing director Henry Fan and the other former executive directors of CITIC, it said in a statement on Thursday.

It is also seeking court orders to compensate as many as 4,500 investors in the company.