Hong Kong SFC shows deficiencies in work of IPO sponsors

In its Report on Sponsor Theme Inspection Findings released this week, the Hong Kong Securities and Futures Commission (SFC) notes shortcomings in the work of some licensed corporations sponsoring initial public offerings (IPOs). The SFC has conducted an inspection on sponsors so as to assess the level of their compliance with the existing regulatory requirements. Reviewing 17 sponsors of different sizes, the SFC has identified certain deficiencies in the work performed by some sponsors as well as some inadequacies in their internal systems and controls. These include unsatisfactory due diligence on listing applicant’s business, questionable disclosure to The Stock Exchange of Hong Kong during the listing application process, and inadequate internal systems and controls over sponsor work.

Read more about the SFC’s regulatory report.

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