Advertisement

HKEx mulls listing bar for poor operators

Reading Time:2 minutes
Why you can trust SCMP
0

Companies that post several years of losses or whose share price falls to a rock-bottom level could lose their listing under a proposal from Hong Kong Exchanges and Clearing.

HKEx chief executive Kwong Ki-chi said the exchange next month would issue a consultation paper outlining new conditions that would make it easier to delist poorly performing companies.

Analysts said if the HKEx implemented its proposals many under-performing stocks would be kicked off the main bourse, improving the quality of the exchange.

The move would help the HKEx deflect criticism that it has failed to ensure the quality of listed firms.

Under present rules, companies can be delisted if they have no business operations and have been suspended from trading for up to two years.

There are 13 companies still listed on the exchange, which have already been suspended for more than three months. But the exchange says its hands are tied by the two-year rule.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2-3x faster
1.1x
220 WPM
Slow
Normal
Fast
1.1x