HONG KONG, March 4 Hong Kong Exchanges and
Clearing Ltd has rejected a third of all companies
applying to list on the city's stock market since it introduced
tougher measures in October, the exchange operator's chief
regulatory officer said on Tuesday.
Hong Kong's Securities and Futures Commission last year
introduced tougher rules for banks preparing companies for
listing in an effort to improve the quality of initial public
offerings in the city.
So far, six out of eighteen companies that applied to list
in Hong Kong since the changes have had their applications
returned because required documents were missing or incomplete,
the exchange operator said.
"If we were returning five or ten percent of submissions
that would show the market's in the right place, but
thirty-three percent is too high," Chief Regulatory Officer
David Graham told a media briefing.
"In the past, companies could initially submit applications
that were around 60 percent complete. Now in reality we expect
them to be 95 percent ready," he added.
From April 1, companies that are rejected by the Hong Kong
exchange will also face a two-month moratorium on submitting new
applications, and their names will also be made public.
With nearly half of its market value wiped out in the last
three years, the stock exchange has pinned hopes on a HK$3
billion ($386 million) technology upgrade, a push into
yuan-denominated products and its $2.2 billion purchase of the
London Metal Exchange in 2012 to give it a much-needed earnings
(Reporting By Lawrence White and Elzio Barreto; Editing by