No smoke without fire has been market regulators' rallying call in recent months. Rapid response trading suspensions have followed violent share price movements that company directors cannot properly explain.
The new shotgun policy has produced an avalanche of suspensions leading to investigations. Desperate to avoid the opprobrium that a halt to trading brings companies are getting ever more innovative in their excuses.
Most recently cocktail party chatter has been added to the list. Details of possible deals leaked over martinis have been offered in official announcements as reasons for unusual share price movements.
In these crazy times when little more than the hint of a deal is enough to trigger a giddy share price spiral such information has been useful to share ramp artists.
Directors have been put under the spotlight in a way few are used to. Not before time, many would say, given the power of insiders in Hong Kong. That firms are being forced to reveal details of directors' price-sensitive conversations at social events must improve transparency.
The new policy of suspend with extreme prejudice has seen the usual 'we have no idea why our share price is moving' response roundly rejected. As a result, boards have been forced to cobble together excuses to face off action by the Securities and Futures Commission and the stock exchange.
Of course, the very fact that potential takeover talks are held over drinks raises worrying questions. Perhaps that was always the way in Hong Kong, only surfacing as an issue with the new get-tough policy, but it hardly rates as an excuse.
