The head of Hong Kong’s stock exchange has suggested the city dramatically widen the scope of an “emotional” review of its process for listing new companies — potentially offering regulators a way of dealing with the tricky issue.
The proposal comes as the Hong Kong Exchange celebrates a second year as the world’s largest new listings venue, despite growing criticism of the behaviour of its smaller stocks.
Charles Li , chief executive of the HKEx, yesterday suggested the city expand a current review of its listings process by adding an examination of its Growth Enterprise Market — broadly equivalent to London’s AIM exchange for smaller companies. Views could also potentially be sought on a new board designed to attract smaller start-ups.