HONG KONG (BLOOMBERG) - Hong Kong's system for overseeing initial public offerings (IPOs), which is facing change by the city's authorities, has worked well for the market, according to Charles Li, chief executive officer of Hong Kong Exchanges & Clearing Ltd.
The Securities and Futures Commission is working with HKEX on a consultation that would change how one of the world's largest IPO venues screens applicants. Under the current system, the Listing Committee, staffed by finance and legal professionals appointed by the exchange, reviews firms for approval. The proposals published in June would reduce the Committee's power and give the SFC a stronger grip, some industry analysts and lawmakers have said.
"The Listing Committee is a very unique, very structurally Hong Kong phenomena that have served this market extremely well for many, many, many years," Mr. Li said at a lunch hosted by the Hong Kong Securities and Investment Institute on Thursday. "Is this system perfect? Obviously not. Could this system by improved? Absolutely."
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