The four possibilities government is offering are:

• letting HKEx set up a subsidiary to handle new listings;
• expanding the current dual filing system;
• shifting the listing function from Hong Kong Exchanges and Clearing (HKEx) to the Securities and Futures Commission; or
• setting up a new regulator to handle the job.

Perhaps predictably, Mr Chan says that the HKSA is against the third and fourth proposals (it would lose power) but could accept either of the first two. The SFC, which was itself a new creation last year, is thought to be keen to gain more control over the listingts process, and stock market regulation in general.

Other moves being considered by HKeX include a significant enhancement of the existing voluntary Code of Best Practice, which would include a requirement for companies to disclose directors' salaries by name, increase a listing applicant's minimum shareholders to 300 from 100, and appoint at least three independent non-executive directors instead of two. HKEx chief executive Paul Chow has also said said the exchange is studying the possibility of mandatory training for first-time directors in listed companies.

On the other hand, possibly reacting to a recent dearth of major new listings, HKEx is said to be considering waiving the three-year profit requirement for new entrants.