The Stock Exchange of Hong Kong Limited (the Exchange) takes the leading role in regulating companies seeking admission to the Hong Kong markets and supervising those companies once they are listed. The Exchange is responsible under statute for ensuring, so far as reasonably practicable, that the Hong Kong markets are fair, orderly and informed (the Exchange’s statutory duty). The Exchange's role is not exclusive.
The Hong Kong Securities and Futures Commission (the SFC) performs a lead role in market regulation and certain areas of listing regulation and a complementary role through the exercise of its statutory powers of investigation and enforcement in cases involving corporate misconduct.
The SFC has a statutory duty to supervise and monitor the Exchange’s performance of its listing-related functions and responsibilities. The staff of the Exchange and the SFC meet regularly to discuss listing-related matters. Under the dual filing regime, the Exchange passes copies of materials submitted by listing applicants to the SFC. The SFC may object to a listing if the disclosure in the listing materials appears to the SFC to contain false or misleading information. The SFC also conducts a periodic audit of the performance by the Exchange in its regulation of listing-related matters.
The Exchange’s listing-related functions are discharged by the Listing Division and the Listing Committee and fall into two broad categories: (a) the establishment and promulgation of rules (the Listing Rules) prescribing listing requirements for listing applicants and listed issuers; and (b) the fair and impartial administration of the Listing Rules. The SFC must approve all changes to the Listing Rules and policy decisions that have mandatory effect or general application.
For further information on the respective roles of the SFC and the Exchange on listing matters, please refer to:
• Memorandum of understanding governing listing matters dated 28 January 2003 and the joint press release
• Addendum to the memorandum of understanding governing listing matters dated 9 March 2018 and the joint press release