At a time when U.S. exchanges seem to have lost the capacity to competently manage an initial public offering, one might expect Hong Kong’s securities honchos to sense an opening. They have apparently gotten a different message.

The new rules, expected to be unveiled within the next two weeks, will make Hong Kong’s IPO process more like that in the U.S., people briefed on the new rules say. Banks will need to do more to vouch for the integrity of IPO candidates, and companies will disclose their financial information far earlier in the process.

Banks could be held criminally liable under the new rules if they bring companies to market that include false statements in their prospectuses, these people said….

Most of the major companies that listed in Hong Kong in recent years have come from China. While the Hong Kong Stock Exchange suffered few of the accounting and governance scandals that have hit Chinese companies listed in the U.S., investors have lost interest in Chinese companies, saying they lacked transparency or their offerings were overpriced.

Here’s hoping that they don’t make the process too much more like that in the U.S.

Hong Kong IPOs to Get New Rules [WSJ]
Nasdaq Veteran Clicked ‘Halt’ Instead of ‘Extend’ on WhiteHorse IPO [Deal Journal]

Comments (3)

  1. Posted by guest | December 10, 2012 at 2:59 PM

    I DON'T LIKE CHANGE

  2. Posted by Guest | December 10, 2012 at 3:05 PM

    Hey Shazar, quite coppin my style. I can get very prickly.

    -The Shaqtus

  3. Posted by FKApmco | December 10, 2012 at 3:47 PM

    Dear Jon:
    I waited for you as long as I could but after two years with no contact from you I couldn't wait any longer and I fell for another man. And now you are back but I cannot go back to you. Sure, you write short, factually correct articles with pithy headlines but I find what I need now is to be totally mind-fucked and charted and footnoted until I am begging for mercy. This hurts me more than it will hurt you but at the end of the day I have to be true to myself. It's over Jon. I'm in love with Matt.

    PS. I hope we can still be friends.