The Stock Exchange of Hong Kong is considering requiring companies seeking listing on the proposed second board to have a large independent investor as a top shareholder.
The proposed requirement was an attempt to increase second board regulation, stock exchange executive director Lawrence Fok Kwong-man said at a seminar of the Federation of Hong Kong Industries yesterday.
Mr Fok said the stock exchange was seriously considering launching the second board and that a consultation would begin by the end of this year.
The second board was a new market which would give companies failing to meet main board profit and capital requirements the chance to raise funds.
The companies were likely to include hi-tech companies and small and medium-sized companies in Hong Kong, in the mainland and in the region, he said.
Mr Fok said that as these companies were smaller than those listed on the main board, the price movement of these companies would be more volatile than blue chips.
