SFC Reports On HKeX's Regulation Of Listings

by Mary Swire, LawAndTax-News.com, Hong Kong

19 October 2011

Hong Kong’s Securities and Futures Commission (SFC) has published its annual report on the performance of The Stock Exchange of Hong Kong (HKeX) in its regulation of listing matters during 2010.

The SFC’s view is that the operational procedures and decision-making processes reviewed were appropriate to enable SEHK to discharge its statutory obligation to ensure, so far as reasonably practicable, an orderly, informed and fair market under section 21 of the Securities & Futures Ordinance during the review period.

However, in the review, the SFC also identified certain areas for HKeX to continue to enhance its performance. Recommendations include developing specific guidance for each accepted overseas jurisdiction to assist its staff to properly implement the Listing Rules requirements specified in the SFC and HKeX’s joint policy statement when vetting subsequent listing applicants from the same jurisdiction.

In addition, the SFC also recommended that the HKeX should review how it could further improve the manner in which the information it discloses about its practices, procedures and decisions can be more readily accessible to both experienced market professionals and less frequent users of its many disclosures.

In its response to the review, the Financial Services & the Treasury Bureau said that it welcomed measures to ensure consistency and high standards in vetting listing applications from overseas companies, to promote Hong Kong’s listing platform to overseas companies without compromising the exchange's listing standards and investor protection. It looked forward to further efforts by the HKeX to promote the openness, fairness and transparency of Hong Kong’s market.

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