HK regulator warns bankers on IPO rules

[HONG KONG] Hong Kong's securities watchdog has warned investment bankers they need to provide "meaningful disclosure" for initial public offerings (IPOs) as the regulator attempts to improve corporate governance.

The Securities and Futures Commission (SFC) said in its inaugural newsletter on listing disclosures that bankers could not just tick the boxes on the same checklist for each IPO.

The SFC's new sponsor regime requires IPO applications to be substantially complete upon submission and represent a major cultural shift for IPO bankers who were accustomed to filing rushed and incomplete submissions that often bore little resemblance to the final prospectus.