'Just a talking shop': HKEx listing reform draws ire

Instead of a joint SFC-HKEx committee to rule on listings and develop policy, itself a compromise, investors are left with a consultative panel that lacks any formal powers.
From left to right: SFC CEO Ashley Alder, SFC Chairman Carlson Tong, Secretary for Financial Services and the Treasury James Lau, HKEx Chairman Chow C K, HKEx CEO Charles Li
From left to right: SFC CEO Ashley Alder, SFC Chairman Carlson Tong, Secretary for Financial Services and the Treasury James Lau, HKEx Chairman Chow C K, HKEx CEO Charles Li

History looks to be repeating itself.

The 2002 penny stocks incident’, in which HK$10 billion $1.28 billion was wiped off the value of several companies, cast an unflattering light on Hong Kong’s listing regime. The conclusion drawn by the subsequent Expert Group appointed in March 2003 by the Financial Secretary was that HKEx, Hong Kong Exchanges and Clearing, should lose its listing function to a new division of the Securities and Futures Commission to be known as the Hong Kong Listing Authority.

In the end, that idea never got off the ground...

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