Both Singapore and Hong Kong take steps to improve their local bourses
Healy Consultants Group PLC
10 August, 2016
Positive news coming around the same time from both important Asian securities players, Singapore and Hong Kong. As both jurisdictions were being accused of harboring conflict of interest of their stock exchanges, they decided to take radical actions via improving regulatory powers and further increasing the quality of the companies that are being listed on their platforms.
Currently, both Singapore Exchange (SGX) and Hong Kong Exchanges & Clearing (HKEX) currently represent the top regulators of their own platforms, making so that they both receive funds and dividends from the companies they are required to govern and regulate. This conflict of interest raised red flags in the past months due to occurring financial scandals, shaking trust and confidence.
The first step in the right direction was taken by HKEX that limited the regulatory and decision making powers of its own CEO and transferred the policing to a separate securities oversight.
Immediately after, SGX confirmed its plans to move the regulatory functions outside of its structure via new separate subsidiary, lowering concerns and improving transparency.
Both actions were welcomed by government officials and big businesses as well. Jamie Allen, secretary general of the Asian Corporate Governance Association confirmed that It's definitely a positive for investors. There has been a lot of concern that for-profit exchanges are not able to independently regulate the companies that list on their markets."
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