Hong Kong’s securities regulator last week finally revealed its plans to improve the regulation of sponsors of initial public offerings.
The Securities and Futures Commission SFC launched a two-month industry consultation back in May amid growing concerns about the quality of some companies that have sought to list in Hong Kong, in a move that was aimed at maintaining investor confidence in the city’s IPO market.
The consultation did not come as a surprise, but still caused controversy. One of the most hotly debated issues was the one dealing with civil and criminal liability for information contained in the prospectus.
Despite opposition from sponsors...