THE STOCK EXCHANGE OPERATIONS OF THE MARKET
(Chapter Five of the Report)
The SRC recommends that
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provided the necessary safeguards and regulations are introduced, short selling should be allowed in Hong Kong. (para. 5.11)
short selling should be deferred at least until the restructuring of the SEHK and the regulatory authority has been successfully completed, and the two bodies have developed sufficient resources and capability to monitor and control the activity. (para. 5.13)
within 12 months of our report being published, the regulatory authority should review the steps taken to strengthen the Listing Department of the SEHK. (para. 5.23)
the pricing of new issues should be left entirely to companies, their advisers and underwriters; the SEHK should play no part. (para. 5.25)
the SEHK and the regulatory authority should review the new issue queuing system. (para. 5.26)
the listing of any company which ceases to trade should be cancelled, and if such a company is acquired by a purchaser and a major change of business is intended, full listing requirements should be imposed. (para. 5.27)
the SEK should review its procedures on suspension with a view to increasing the promptness with which price sensitive information is made available. (para. 5.28)
Hong Kong should not move to a market-maker system but should continue with the existing order-based system. (para. 5.38)
overseas market-makers should be given some relief from stamp duty to enable them to discharge their functions efficiently. (para. 5.44)
overseas market-makers exampted from stamp duty should be approved by their own exchanges. (para. 5.45)
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