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The Government today (September 19) welcomed the report by the Securities and Futures Commission (SFC) on its annual review of the performance of the Stock Exchange of Hong Kong Limited (SEHK) in regulating listing matters in 2013.
The SFC's report reviews relevant operational procedures and decision-making processes in the Listing Department of the SEHK to assess whether they are adequate to enable the SEHK to discharge its statutory obligations under section 21 of the Securities and Futures Ordinance so as to ensure, so far as reasonably practicable, an orderly, informed and fair market. In this regard, the SFC is of the view that these operational procedures and decision-making processes were appropriate during the review period.
The report recommends the SEHK to adopt a higher level of scrutiny and a more probing approach in its vetting process in respect of applications for transfers of listings from the Growth Enterprise Market to the Main Board. With respect to listing applications of debts offered to professional investors only, the report recommends the SEHK to improve the verification process and monitoring of compliance with continuing disclosure obligations. In addition, the SFC recommends the SEHK to enhance its internal documentation on waiver applications in respect of the Listing Rules.
A government spokesman said today, "We welcome measures to promote higher standards in the vetting and processing of applications relating to various listing matters and compliance with the Listing Rules. We look forward to continuous co-operation among the SFC, the SEHK, issuers and other stakeholders to uphold the quality of our market."
He added, "The conduct of the annual review represents ongoing efforts by the SFC and the SEHK to enhance the regulatory regime for the securities market in Hong Kong."
Ends/Friday, September 19, 2014
Issued at HKT 16:35
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