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Hong Kong proposes creation of securities listing policy panel
[HONG KONG] Hong Kong regulators on Friday proposed the setting up of a securities listing policy panel as part of their initiative to improve transparency and governance structure for investors in the Asian financial hub.
The move caps more than a year of discussions over proposals that would have handed more authority to the Securities and Futures Commission (SFC) to vet IPO candidates early on in their listing process as opposed to at later stages.
The new panel will be set up as an "advisory, consultative and steering body" outside the SFC and the Hong Kong Exchanges and Clearing Ltd (HKEX) to initiate and centralise discussion of listing policies, said a statement.
The proposed changes follow investor criticism of possible conflicts of interest in the current framework where HKEX acts as both the profit-driven market operator and regulator of initial public offerings (IPOs).