The Hong Kong Institute of Certified Public Accountants (HKICPA) has voiced its support for the consultation summary published by Hong Kong Exchanges and Clearing Limited (HKEX) concerning measures to enhance the competitiveness of the listing regime. The Institute is encouraged that several of its submissions were adopted in the final summary, believing this will help sustain Hong Kong's status as a competitive international fundraising hub while balancing appropriate investor protection with market quality.
The HKICPA particularly welcomes that HKEX has taken into account several of the Institute's key concerns regarding the optimisation of the return mechanism. In its consultation response, the HKICPA argued that making public a full list of all professional institutions involved in a submitted listing application could lead to ambiguity over roles and responsibilities, unfairly affect the reputation of those institutions, and fail to distinguish the different duties of various professional advisers in the listing process. Consequently, the Institute recommended that any enhanced disclosure measures should clearly state the reason for the application's submission and properly differentiate the responsibilities of all relevant parties.
After considering market feedback, HKEX made several significant amendments to the final framework to address these concerns. Notably, HKEX agreed to clearly disclose the reason for each returned application and the identity of the related participants. The terminology for professional groups in listing applications will be changed from "responsible parties" to "participating in the application." It has also been clarified and disclosed that the identification of a professional institution's role is solely for the purpose of enhancing transparency and does not imply fault, legal liability, or any responsibility for defects leading to the application's return.
The HKICPA welcomes these revisions and clarifications, believing they better reflect the reality of the IPO process, where multiple professional institutions contribute within their clearly defined scopes of work. The Institute will continue its efforts to protect member interests while supporting high standards of market integrity and investor protection.
In its recommendations, the HKICPA suggests that while implementing a more inclusive and competitive listing framework, efforts should be made to promote and strengthen corporate governance measures, providing stronger risk protection for investors. The Institute will maintain constructive communication with HKEX, the Securities and Futures Commission, and other stakeholders. It will continue to exchange views on matters affecting the accounting profession and Hong Kong's capital market, with the goal of fostering a fair, transparent, and competitive listing environment that safeguards the interests of investors, issuers, and professional advisers.
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