HNA Investment Group Co. said it has scrapped a private placement plan worth 5.2 billion yuan (US$786.57 million), as the sprawling HNA conglomerate comes under growing scrutiny from regulators.

The firm submitted a plan in May last year for the placement to 10 current investors, including controlling shareholder HNA Capital Group Co., which in turn makes up about a third of the overall HNA Group Co.

But it did not gain approval for the plan from the China Securities Regulatory Commission (CSRC) and has now withdrawn its placement application, HNA Investment said in a statement to the Shenzhen Stock Exchange late Monday.

“After taking full consideration of the progress of approval, the company’s current situation, future development planning and the capital market environment, the company decided to terminate the private share offering ... and withdraw the application from the CSRC,” HNA Investment said.

“The termination of this private placement plan will not have a substantive impact on production and operations,” it said. The interests of shareholders have not been harmed, it also said.

The broader HNA group, which is involved in industries as diverse as aviation and financial services, has announced deals over the last two years worth more than US$50 billion, including sizable stakes in Hilton Worldwide Holdings and Deutsche Bank. (SD-Agencies)