It takes two to tango

Author: | Published: 4 May 2011

While the Stock Exchange of Hong Kong (HKSE) is the frontline regulator for handling initial public offerings in Hong Kong, the Securities and Futures Commission (SFC) has always taken a keen interest in maintaining the integrity of the initial public offering (IPO) market and upholding the standards of those who participate in it.

In this regard, the SFC recently fired a salvo in its battle to ensure sponsors of IPOs fulfil the many duties which are required of them. On March 29 2011, the SFC issued its report on Sponsor Theme Inspection Findings.

This is the latest in the SFC's Sponsor Theme Inspection efforts, by which it closely scrutinises the work of IPO sponsor firms and periodically reports to the public what it has discovered in the course of such reviews. In the report, the SFC's findings revealed fundamental themes of deficiencies in the work performed by the sponsors and...