Aggregated News From Investment Management Regulators

SFC concludes consultation on conduct requirements for bookbuilding and placing activities


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The Securities and Futures Commission (SFC) today released consultation conclusions on conduct requirements for capital market transactions in Hong Kong (Note 1) which clarify the roles of intermediaries and set out the standards expected of them in bookbuilding, pricing, allocation and placing activities. The SFC’s proposals received broad support (Note 2).

“Capital market intermediaries play a key role in capital raising activities in Hong Kong. Enhancing the transparency and promoting the fairness and orderliness of these activities are crucial for the development of a healthy capital market,” said Ms Julia Leung, the SFC’s Deputy Chief Executive Officer and Executive Director of Intermediaries. “The conduct requirements will also help to ensure consistency with global regulatory standards and expectations, while addressing some undesirable behaviour.”

The amendments to the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission and Guideline to sponsors, underwriters and placing agents involved in the listing and placing of GEM stocks will be gazetted on 5 November 2021 and become effective on 5 August 2022.


  1. The SFC’s Consultation on (i) the Proposed Code of Conduct on Bookbuilding and Placing Activities in Equity Capital Market and Debt Capital Market Transactions and (ii) the “Sponsor Coupling” Proposal was launched on 8 February 2021. Under “sponsor coupling”, at least one head of the underwriting syndicate for an initial public offering of shares will also act as a sponsor. This sponsor has to be independent of the issuer.
  2. The SFC received 41 written submissions from respondents including industry associations, intermediaries, professional bodies and individuals.

This news item was originally published by the Securities and Futures Commission (SFC HK). For more information, please see the Source Link.

Regulator Information

Abbreviation: SFC
Jurisdiction: Hong Kong

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