Media365
Hong Kong’s market regulator will soon begin inspection of investment banks to assess their roles as sponsors of listing candidates, in its latest effort to uphold the quality of new listings amid a booming market.
“To gatekeep listing applications and further solidify Hong Kong’s position as a trusted fundraising hub, the SFC issued a circular to IPO sponsors in January to raise concerns about deficiencies in listing documents and sponsor misconduct,” the commission said in its quarterly report released on Thursday.
“It is now reviewing the sponsors’ submissions as required by the circular and will commence thematic inspections of sponsors in the near term.”
The SFC told investment banks that it “may take potential regulatory actions to uphold market quality and protect the investing public if substandard behaviours persist or worsen”.
