The Chamber of Hong Kong Listed Companies chairman Lawrence Ho Yau-lung is disappointed at Hong Kong Exchanges and Clearing for proceeding with introducing the quarterly reporting rule against the wishes of major listed companies.
'The chamber and many listed companies have shown our strong opposition to the proposal of launching quarterly reporting in Hong Kong during the consultation period,' Mr Ho said yesterday after inviting nominations for the association's corporate governance competition. 'We can't understand why the exchange refused to listen to us.'
Mr Ho manages three companies listed in the United States, where quarterly reporting is mandatory.
His US experience tells him that 'management may have to focus on short-term returns instead of longer-term development' to show good report cards every quarter.
'If Hong Kong introduces quarterly reporting, it may encourage more investors to turn day traders.'
To catch up with international practice, the exchange consulted the market earlier this year about requiring main-board companies to report results every three months instead of six. While most listed companies objected, analysts and investors favour quarterly reporting to increase management transparency.