Given the relatively high incidence of corporate irregularities involving Hong Kong-listed mainland firms, S-chip corporates and perhaps a few US-listed ones, investor confidence in those companies has already weakened.”
global IPO rankings, behind New York, home to the record Alibaba listing in September. The SAR placed second in 2013 as well, behind New York but ahead of London.
Meanwhile, the conflicting roles of HKEx as both a referee (regulator) and player (revenue-generating listed company) have led to a string of unresolved interest confl which have created fragmentation in devising a coherent regulatory framework, observed Wong at SPACE.
However, Wong does not think it is easy to make institutional changes.
A change of mindset also means the founder and major shareholders must realize that the company is no longer their personal property. They cannot simply transfer money in and out with bankers between Hong Kong and the mainland at will, noted Ding.
“Admittedly, top management have huge powers to affect company operations or to override internal controls. But people who work with or for them, mostly accountants and auditors, should shift their thinking as well,” said Patrick Yeung, divisional past presidentGreater China at CPA Australia.
The current regulatory framework relies heavily on accountants and auditors, who are therefore required to carry a high degree of alertness, ethical standards and public accountability to help
chief executive, Hong Kong Institute of Certified Public Accountants