banks in Hong Kong could lobby the citys market regulator
to scrap proposals to cap the number of sponsors on initial
public offerings (IPO) to one per transaction. Market
participants have branded the suggestion as
Kongs Securities and Futures Commission (SFC) this week
sought feedback on a series of proposed changes to sponsor
regulation in the city in its long-awaited
consultation paper. It aims to address regulatory concerns
that sponsor work is falling short of expectations, and restore
market confidence in IPOs, after a string of accounting
scandals involving Chinese ListCos.
bankers in the city have raised concerns over some of the more
radical amendments put forward.
As stated in the SFCs paper, its proposal to restrict
the number of sponsors on any single IPO aims to address what
the regulator perceives as fragmentation of work, gaps and