HKEx: Our listings need to be simplified

Author: | Published: 2 Dec 2011

Market participants in Hong Kong should prepare for the introduction of a more streamlined listing process, the Hong Kong stock exchange (HKEx) has said.

The HKEx listing head, Mark Dickens told delegates at this week’s IFLR Asia Capital Markets Forum that the Hong Kong exchange had a very archaic way of dealing with shares.

“Our central clearing system was wonderful in 1991 but it needs updating,” he said.

The exchange would be working to improve the Hong Kong depositary receipts (HDR) listing process, in particular, in order to encourage more enthusiasm in the product, he said.

“The predilection of companies listing here to keep home listing rules causes major agony for our clearing house, and adds about four months to each listing,” he said. “People should really give serious consideration to simplifying transactions by using HDRs.”

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