Hong Kong Exchanges and Clearing (HKG:0388) has issued a director unsuitability statement and public censure against two former directors of Regal Partners (HKG:1575), according to a Thursday bourse filing.

Shares of Regal Partners were up over 11% in Friday morning trade.

The sanctions apply to former Chairman and Chief Executive Zou Gebing and former Executive Director Shen Zhidong, whom the Stock Exchange said are unsuitable to hold directorships or senior management positions at the company or any of its subsidiaries.

The exchange said both individuals breached rules by failing to cooperate with a regulatory investigation, including not responding fully, or at all, to regulatory enquiries.

The investigation followed earlier disciplinary action in January 2025 over a 20.8 million yuan guarantee granted by a company subsidiary to secure debt owed by a private company linked to Zou.

The exchange said Zou approved the guarantee despite a conflict of interest, while Shen failed to properly oversee subsidiary operations.

The exchange clarified that the sanctions apply only to the two former directors, and not to Regal Partners or its other current or former directors.