Amid differences over a move to give statutory backing to listing rules, officials put bill on hold for more discussion
The government will not submit a bill giving statutory backing to certain listing rules during the current legislative session, forcing yet another delay in its stock market reform programme.
The government had originally planned to introduce the bill, which would transfer enforcement power over selected listing rules from Hong Kong Exchanges and Clearing to the Securities and Futures Commission, to the Legislative Council this month for approval. The current legislative session ends on July 6.
By missing that target, the bill cannot be tabled until October, when Legco reconvenes.
According to a source close to the government, it wants more time for consultations over the reforms, which would challenge powerful vested interests. 'The bill is so controversial that it would be good to allow more time for the market to express its views,' said the source, who also cited a legislative backlog in Legco for the delay.
In a January consultation paper, the government proposed empowering the SFC to impose fines of up to $5 million for certain breaches of the listing rules. It also suggested that the commission refer more serious breaches to the Market Misconduct Tribunal, where fines could run as high as $8 million.
