Monday, July 11, 2016

JPMorgan becomes first global bank to fall foul of Hong Kong's stricter IPO sponsorship guidelines



HONG KONG JPMorgan Chase & Co (JPM.N) has come to be the first global investment financial institution to fall foul of Hong Kong's stricter IPO sponsorship regulations, dealing a blow to its recognition inside the area.

The Hong Kong inventory trade added harder disclosure rules in 2014, which could make banks criminally accountable if a list prospectus is observed to have misled investors.

It again a listing application for Shenhua health Holdings Ltd, a subsidiary of monosodium glutamate (MSG) manufacturer Fufeng organization Ltd (0546.HK), on March 29 saying it wanted more facts, change information showed. JPMorgan Securities (some distance East) Ltd acted as sole sponsor of the IPO.
simplest seven different preliminary public offerings (IPOs) had been returned for the reason that new guidelines got here into effect. After applications are again, corporations have to wait at least 8 weeks before re-filing an utility.

the new regulations aimed to crack down on sloppy work by underwriters and issuers that filed incomplete or faulty files, mainly after a chain of scandals at chinese language corporations that ran into problem after listing in Hong Kong.

JPMorgan declined to comment on Shenhua fitness's listing utility on Thursday. Fufeng group, the world's biggest producer of meals flavor enhancer MSG, failed to return a Reuters request for remark after everyday business hours.

The sponsors of the preceding seven listings on the stock alternate's foremost board and boom agency market (GEM) that wanted further vetting had been all from China and Hong Kong, change records showed.

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