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Hong Kong regulators frustrated with the poor quality of paperwork in recent listings have proposed a new solution: “naming and shaming” the lawyers and auditors behind the shoddy filings.
In a consultation paper released on Friday, Hong Kong’s stock exchange proposed widening the list of advisers named after an initial public offering application is “returned”, or rejected for substantial errors, to include lawyers, accountants, auditors and industry consultants.
The markets regulator and stock exchange previously warned investment bankers over the poor quality of some listings paperwork, including the use of marketing language, copying and pasting content and failing to answer specific questions, as they grapple with a record number of applications.
The exchange said “the combination of these proposals with the existing measures for return applications” would provide a “strong incentive” for IPO applicants, their sponsors and advisers to meet its standards.
At present, only the companies that apply to list and their sponsoring banks are named when a filing is returned. The regime was introduced in October 2013 with the aim of improving due diligence. Companies whose applications are returned cannot resubmit for eight weeks.
Only 15 companies and their sponsors have been named and shamed on the exchange’s website since 2014, with the most recent case in November 2025. Among the banks listed are Goldman Sachs, JPMorgan, Morgan Stanley and Macquarie.
The proposal to widen the list comes as Hong Kong faces an influx of Chinese companies looking to raise funds in the city.
Hong Kong was the world’s top IPO venue by listings volume last year, bouncing back from a years-long slump after the Covid-19 pandemic hit activity.
Competition for the mandates has driven down fees, with the secondary listing of battery maker CATL receiving pitches last year as low as 0.01 per cent.
Meanwhile, many banks and law firms have yet to hire back staff cut during the pandemic, as geopolitical uncertainty and a weaker domestic economy weighed on the region.
The exchange said it would solicit market views on the proposal until May 8.
It is also seeking feedback on extending a “confidential filing” regime that allows applicants to withhold some sensitive information, and on loosening dual share-structure requirements to allow more companies to issue different classes of shares — typically to ensure a founder retains control over a public company.
The consultation framework, part of the exchange’s mission to strengthen “Hong Kong’s position as a leading international financial centre”, has previously led to changes such as allowing technology start-ups to list in the territory and loosening requirements for secondary listings.
