Brokers, pro-business group step up opposition to proposed listing reform

Listed companies, brokers and a pro-business political party have escalated their opposition to the proposed listing reform, urging officials to abandon the ongoing consultation which they warn will lead to over regulation and deter companies from listing in Hong Kong.

Daisy Yeung, chairwoman of Hong Kong Institute of Securities Dealers, said her broker industry body strongly opposed the reform, in comments made at a party forum attended by more than 300 brokers and businessmen.

“We call for the Securities and Futures Commission to abandon the ongoing consultation of the proposed listing reform which we fear would make the SFC too powerful. This will lead to market over regulation and hence drive away new listings,” she said at a forum on Wednesday co-hosted by stock broker lawmaker Chris Cheung and the Business and Professionals Alliance of Hong Kong.

The pro-business political party vice-chairman Jeffrey Lam said the business sector was worried the proposed reform would affect fund raising activities in Hong Kong.

“Hong Kong’s stock market has worked well in the past two decades to raise funds for many H-shares from the mainland and for many Hong Kong companies. This shows the existing listing approval mechanism does not have problems. The business sector is concerned the reform may do more harm than good,” Lam said.