Greater compliance vigilance needed as Hong Kong intensifies listings scrutiny

Ronny Chow, partner, was recently interviewed by Thomson Reuters Regulatory Intelligence regarding Hong Kong’s increased regulation of listing matters.

According to the article in recent months, the Securities and Futures Commission (SFC) has increased its direct presence in the regulation of listing matters. The SFC did so through exercise of its statutory powers under the Securities and Futures (Stock Market Listing) Rules, to object to certain listing applications and to direct suspension of trading in the shares of certain listed companies.

“They [compliance and legal staff] will have to ensure that the banks are doing their work properly, whether the banks act as sponsors and/or underwriters/placing agents in initial public offerings (IPOs) or as compliance advisers to newly listed companies or financial advisers to listed companies. They will have to be prepared that the SFC will intervene at an early stage,” said Ronny.

“That means, we will see not only disciplinary actions being taken at a later stage against bankers who failed to discharge their obligations properly, but also that more poorly managed deals would be put off due to the SFC’s intervention,” he said.

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Key Contacts

Ronny Chow

Partner | Corporate Finance

Email or call +852 2825 9435