The Securities and Futures Commission (SFC) and Hong Kong Exchanges and Clearing Limited (HKEX) today jointly issued a consultation on proposed enhancements to The Stock Exchange of Hong Kong Limited’s (Exchange) decision-making and governance structure for listing regulation (Note 1).
“These enhancements mean that the SFC, working closely with the Exchange through two newly-established committees, will concentrate on those listing policies and decisions which are important for market quality, market competitiveness and development,” said Mr Ashley Alder, the Chief Executive Officer of the SFC. “Other listing decisions, which are expected to be the large majority, will continue to be made by the Listing Department and the Listing Committee. This will enable us to redouble our focus on the crucial issues and clarify the roles of the SFC and Exchange. Listing regulation will be more proactive and efficient whilst the listing process for most companies will be simpler.”
“The current decision-making structure for listing regulation has served the market well. We have a unique model that reflects Hong Kong’s good balance between market development and a trusted regulatory regime. However, as the market has become increasingly large and complex and the global landscape has become more competitive, coordinated regulatory efforts and foresight in policy formulation are required to address new market developments. The proposed enhancements would streamline the processes for making important or difficult listing decisions, and enable the SFC and the Exchange to better coordinate and address future regulatory needs while maintaining Hong Kong’s competitiveness as an international financial centre,” said Charles Li, the Chief Executive of HKEX.
Under the proposals: