Hong Kong’s securities regulator on Thursday fined an Asian unit of Citigroup 57m Hong Kong dollars (US$7.26m) for failures while leading an initial public offering in the city in 2009, The Wall Street Journal reports.

Hong Kong’s Securities and Futures Commission said Citigroup hadn’t conducted “adequate and reasonable due diligence” on some aspects of the listing of Chinese company Real Gold Mining, for which it acted as sponsor. Sponsors shepherd companies through the listing process and can be held liable for misleading statements in the IPO prospectus.