The Hong Kong stock exchange is inviting the general public in this international financial centre to join its listing committee as representatives of investors.
HONG KONG: It’s a bit like your friendly neighbour being asked to sit in on the Bombay Stock Exchange’s listing committee and screen upcoming public issues… Except that it’s happening in faraway Hong Kong.
The Hong Kong stock exchange is inviting the general public in this international financial centre to join its listing committee, which screens public issues, as representatives of investors.
The listing committee of the Hong Kong Exchanges and Clearing Ltd (HKEx) is being expanded from May to accommodate “at least 28 members”, including “at least eight investor representatives”, according to a press release from the exchange.
The listing nominating committee said it is keen to achieve an “appropriate balance of membership, and is particularly interested in receiving applications from individuals who… (are) directly involved in making investment decisions for their own account or on behalf of third parties.”
The appointment will be for a 12-month term, and will carry no remuneration.
The threshold of admittance isn’t very high either: to qualify, individuals must have an understanding of the listing rules and the context in which listing decisions are made.
The listing committee is known to meet weekly and members are expected to attend half of the regular meetings, in addition to some special meetings such as quarterly policy meetings, disciplinary meetings and review meetings.
The move to admit members of the public to the listing committee is seen a step towards “democratisation” of the body that, until now, was pretty much monopolised by stock market players and professionals.
The move makes particular sense in Hong Kong, where retail investors account for a large proportion of investors in initial public offerings (IPOs).
In 2005, the HKEx securities and derivatives markets set new records in market capitalisation - it touched HK$8,260.3 billion ($1,065), ranked eighth in the world in terms of market capitalisation.
Last year, over 65 companies listed for the first time, raising a total of HK$165.7 billion ($21.4 billion).
What’s more, the HKEx stock had a great year in 2005, gaining over 40% during the year.In terms of market cap, the stock is among the top 35 on the exchange. And now, it’s letting the common man in on a bit of ‘insider’ action.
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