SFC and HKEx: Joint consultation on listing regulation

Publication June 2016

On June 17, 2016 the Securities and Futures Commission (SFC) and Hong Kong Exchanges and Clearing Limited (HKEX) jointly issued a consultation on proposed enhancements to The Stock Exchange of Hong Kong Limited’s (the Exchange) decision-making and governance structure for listing regulation.

Under the proposals in the consultation:

  • the listing function will remain within the Exchange which will continue to be the frontline regulator for listing matters;
  • the Listing Committee, together with the Listing Department of the Exchange, will continue to decide a large majority of initial listing applications and post-listing matters;
  • two new Exchange Committees (namely, the Listing Policy Committee and the Listing Regulatory Committee), on which the SFC and the Exchange will be equally represented, will be established;
  • the Listing Policy Committee will initiate, steer and decide listing policy with participation by representatives of the HKEX Board and the Takeovers and Mergers Panel; and the Listing Regulatory Committee will decide on IPO and post-IPO matters that have suitability concerns or broader policy implications;
  • the Chief Executive of HKEX will cease to be a member of the Listing Committee but will be an ex-officio member of the proposed Listing Policy Committee; and
  • the SFC will no longer as a matter of routine issue a separate set of comments on the statutory filings made by new applicants.

Notwithstanding the proposed structural and procedural changes in the consultation, the SFC’s powers and functions in relation to listing matters will remain unchanged but the ways in which those powers and functions are exercised and performed will be enhanced. The three-month consultation ends on 19 September 2016. The consultation paper can be found on the SFC website or the HKEx website.


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