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.