They’re even gunning for a permanent seat at the HKEX board.
Bloomberg reports that small-sized, local brokerages which handle a measly tenth of the city’s stocks hold a disproportionate amount of influence over the fate of Hong Kong’s markets as they gun for permanent representation at the board of Hong Kong Exchanges & Clearing Ltd.
Local brokerages displayed their might when the Hong Kong Securities and Futures Commission’s produced a watered down version of the proposal to strengthen oversight for IPOs after furious opposition from the group.
This is because the proposal may enable the regulator to restrict listings in the small-cap market and tighten criteria for independent corporate directors.
“It is completely bizarre that a segment of the community that represents 10 percent of total trading volume seems to have a disproportionate sway when it comes to any structural changes,” said Martin Wheatley, who served as head of the SFC from 2006 to 2011 and is now an adviser to Hong Kong-based hedge fund Oasis Management.
Here’s more from Bloomberg:
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