TNAG-1764-FCO40-2518-Hong-Kong-stock-market-and-exchange-rate-1988 — Page 60

THE MARKETING OF NEW ISSUES

(Chapter Eleven of the Report)

The SRC recommends that

1.

2.

3.

4.

5.

6.

there should be a review of the Hong Kong legislation covering the marketing of securities and other invest- ments with a view to an early update and the consolida- tion of the statutory provisions in a single Ordinance. (para. 11.44)

the existing system should be rationalised and stream- lined so that only one body vets and approves documentation on new issues. (para. 11.54)

the vetting of prospectuses for issues of listed securities should be undertaken by the SEHK.

(para. 11.55)

if the SEHK is to be the sole "vetter" of listed issues, the Commission's Rules should be repealed. (para. 11.56)

a listing document should simply be exempt from the Third Schedule requirements if it complies with the SEHK's rules and is approved as doing so by the SEHK.

(para. 11.59)

if it is decided to vet unquoted issues, the task of approving the prospectus should fall to the specialist statutory securities market regulator i.e. the new SC.

(para. 11.60)

7. the new SC should initially audit the SEHK Listing

Division at six monthly intervals. (para. 11.64)

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