HKEx accounting rule will affect China IPO pricing

Author: | Published: 7 Jan 2011
Hong Kong Stock Exchange’s (HKEx) move to accept mainland Chinese accounting and auditing standards for mainland incorporated companies in Hong Kong is likely to lead to lower initial public offering (IPO) valuations.

Standard Chartered’s company secretary and senior corporate governance counsel, Bill Wang, said he expected the rule change to create reputational issues which in turn would lead to discounted pricings for lesser-known mainland companies...