“After carefully considering market comments, we propose adopting an evolutionary approach in developing a statutory disclosure regime, by focusing on inside information and civil sanctions.”
In March this year, Hong Kong released a consultation paper on giving statutory backing to the disclosure of price-sensitive information. The government has proposed a civil regime to police breaches of this legislation but, despite leaving room for “evolution” to stronger sanctions, some market participants believe that civil sanctions are not enough, even in the short term. Instead, only criminal penalties can act as a deterrent to non-disclosure.
As David Webb, an activist for shareholder rights, says: “What’s the point in producing a defective vehicle in the first place; why not produce a system that actually works?” Jamie Allen, secretary general at the Asian Corporate Governance Association agrees. “As usual, we’re taking the incremental Hong Kong approach to solving a problem,”...