The Securities and Futures Commission (SFC) and The Stock Exchange of Hong Kong Limited (SEHK or the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today issued a joint statement regarding the price volatility of stocks listed on the Growth Enterprise Market (GEM).
The SFC and the Exchange consider that some market practices may not enable an orderly, informed and efficient market for such securities to develop.
The SFC also issued a guideline to provide guidance to sponsors, underwriters and placing agents on the standards of conduct that is expected of them in the listing and placing of GEM initial public offering (IPO) stocks.
New applicants seeking to list on GEM should ensure compliance with all relevant GEM Listing Rules including ensuring that in relation to their securities for which listing is sought the conditions exist for an open market as well as orderly, informed and fair trading…