Hong Kong financial body pledges support for third board and green finance
Financial Services Development Council says it has issued 30 proposals in the past three years with recommendations that will boost Hong Kong’s role as financial centre
The Financial Services Development Council in Hong Kong has pledged its support for the local bourse to launch a third board to draw technology firms and other overseas companies to list in the city.
The council, a government-appointed advisory body, in 2014 recommended Hong Kong follow Britain in setting up multiple markets to introduce different boards with different listing rules that are tailor-made for the needs of diverse investors and firms.
“When the council first made these recommendations, there wasn’t much reaction from the markets and other regulators. Now it has become a hot topic recently as the stock exchange will soon have a consultation on the launch of the third board,” chairman Laura Cha Shih May-lung said at the council’s annual media briefing.
“The listing rules in Hong Kong have not changed much in the past 20 years. We would support such a review as keeping an open mind is important in attracting different companies to list in Hong Kong.”
Hong Kong Exchanges and Clearing chief executive Charles Li Xiaojia said last week that a consultation paper would be issued by the end of this month on the launch of the third board and the review of the Growth Enterprise Market.
Rules on the third board are expected to be more flexible than those on the main board and the GEM in order to attract listings by technology firms, start-ups, overseas companies and those with dual-shareholding structure.