In a warning to sponsors and listing applicants, Hong Kong's
Securities and Futures Commission (SFC) has criticised
inadequate standards of diligence and disclosure on initial
public offerings (IPOs). But some argue the regulator must go
On July 26, the regulator published its half-yearly Dual
Filing Update. It revealed that of 68 listing applications
received in the six months up to March 2010, the SFC raised
comments on 60 (86%) and "deferred commenting on two others due
to serious deficiencies".
But despite arguing that this "calls into question the
standard of due diligence performed in the preparation of
listing documents", the SFC did not name offenders or detail
any disciplinary action.
"If this were a soccer match," said one in-house counsel,
"the referee has...