SFC and SEHK Impose New Requirements for Listing Applicants, Sponsors, Underwriters and Placing Agents of GEM IPOs

On 20 January 2017, the Securities and Futures Commission (the SFC) and The Stock Exchange of Hong Kong Limited (SEHK or the Exchange), issued a joint statement regarding the price volatility of GEM Stocks (the Joint Statement). The Joint Statement sets out regulatory concerns and reminds listing applicants, sponsors and placing agents of the need to ensure full compliance with the GEM listing requirements, and specifically of the need to ensure that conditions exist to provide an open market in the listed securities. The SFC also issued a Guideline to Sponsors, Underwriters and Placing Agents Involved in the Listing and Placing of GEM Stocks providing guidance on their responsibilities on GEM listings. Read more…