Hong Kong’s regulator, exchange to assess listing reform submissions, may take months
SFC and HKEX say they will publish the results of the consultation in due course
Hong Kong’s securities regulator and stock exchange said they will need months to plough through the various proposals and suggestions submitted by academics, bankers, brokers and officials on reforming the city’s financial and listing regulations, as a much-delayed deadline for public consultations lapsed on Friday.
“In the coming months, the SFC and the HKEX will carefully consider and analyse all submissions received in preparing the consultation conclusions, which will be published in due course,” according to a written statement by the exchange, echoing a similar comment by the regulator.
The Hong Kong Exchanges & Clearing Ltd (HKEX) is the current market watchdog agency, which sets policies and approves each individual application by companies to list their shares. The Securities & Futures Commission (SFC) is the regulator that takes a back seat role with veto power in the approval process.
At issue, among a myriad of permutations and clauses, are proposals to propel the SFC into a frontline role alongside the HKEX.
Proponents of the plan, including Hong Kong’s Secretary for Financial Services & The Treasury Chan Ka-keung, and the SFC’s founding chairman Robert Owen, said having the SFC in the front seat will improve the quality of the market.
Opponents of the plan, including listed companies, brokers and pro-business political parties, argue that having a second regulator in the forefront could lead to excessive regulation.