A man walks past an electronic board showing the Hong Kong stock index on March 2. A functioning capital market should offer access to a diverse range of issuers. Photo: AP A man walks past an electronic board showing the Hong Kong stock index on March 2. A functioning capital market should offer access to a diverse range of issuers. Photo: AP
A man walks past an electronic board showing the Hong Kong stock index on March 2. A functioning capital market should offer access to a diverse range of issuers. Photo: AP
Richard Mak
Opinion

Opinion

The View by Richard Mak and Alvin M. Ho

Why Hong Kong’s stock exchange should not raise the profit requirement for listing on its main board

  • Neither the high P/E ratio of listing applicants nor the existence of ‘shell’ companies justifies a move that could shut out many small-cap firms from a fundraising platform
  • Instead, to support these companies, the exchange should consider lowering or even removing the profit requirement

A man walks past an electronic board showing the Hong Kong stock index on March 2. A functioning capital market should offer access to a diverse range of issuers. Photo: AP A man walks past an electronic board showing the Hong Kong stock index on March 2. A functioning capital market should offer access to a diverse range of issuers. Photo: AP
A man walks past an electronic board showing the Hong Kong stock index on March 2. A functioning capital market should offer access to a diverse range of issuers. Photo: AP
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Richard Mak

Richard Mak

Richard Mak, CFA, is president of CFA Society Hong Kong. He is the head of product and business management (Asia) at Pictet Wealth Management. He has over 30 years of experience in the financial industry, with 17 years in equity investments, and has been advising private clients on global investments since 2003.

Alvin M. Ho

Alvin M. Ho

Alvin M. Ho, CFA, is a managing director of a private investment vehicle, and vice-president and society secretary of CFA Society Hong Kong. He is board member of several listed companies, and also a member of the investment committee for AngelHub, Hong Kong's first SFC regulated investment platform.