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ICAC, SFC investigate alleged corruption of listing applications at HKEX (0388)
| ICAC announcement
Webb-site first heard the allegations on 30-May and they were reported in media since then, so evidence may have been lost before the SFC and ICAC launched raids on 2 sponsors, 2 listed companies and a printing firm from 23-Jun onwards. A former Joint Head of the IPO Vetting Team and 2 of his associates have been arrested by the ICAC. You may wonder why a for-profit listed company is in the "business" of regulation. That's because the HK Government rejected the advice of its Expert Group to remove the conflict in 2003. The HK listing process also involves a high degree of subjectivity on "suitability". Any such process invites corruption.
- HKSAR Expert Group to Review the Securities and Futures Market Regulatory Structure
- HONG KONG EXCHANGES AND CLEARING LIMITED