The Securities and Futures Commission (SFC) today released consultation conclusions  on conduct requirements for capital market transactions in Hong Kong  (Note 1) which clarify the roles of intermediaries and set out the  standards expected of them in bookbuilding, pricing, allocation and  placing activities. The SFC’s proposals received broad support (Note 2).

“Capital market intermediaries play a key role in capital raising  activities in Hong Kong. Enhancing the transparency and promoting the  fairness and orderliness of these activities are crucial for the  development of a healthy capital market,” said Ms Julia Leung, the SFC’s  Deputy Chief Executive Officer and Executive Director of  Intermediaries. “The conduct requirements will also help to ensure  consistency with global regulatory standards and expectations, while  addressing some undesirable behaviour.” 

The amendments to the Code of Conduct for Persons Licensed by or  Registered with the Securities and Futures Commission and Guideline to  sponsors, underwriters and placing agents involved in the listing and  placing of GEM stocks will be gazetted on 5 November 2021 and become  effective on 5 August 2022.