Hong Kong steps up efforts to combat IPO-related misconduct

Hong Kong’s securities watchdog has highlighted several problematic issues in recent initial public offerings IPOs that suggest the lack of genuine investor interest and cast doubt over the existence of an open, orderly and fair market in the shares.

The Securities and Futures Commission SFC, in collaboration with the Stock Exchange of Hong Kong Limited SEHK, made the joint statement to raise several red flags, including

• The market capitalisation at listing barely meeting the minimum threshold of HK$500 million under the Main Board Listing Rules or HK$150 million under the GEM Listing Rules
• Very...