The Hong Kong Securities and Futures Commission, together with the Hong Kong Stock Exchange, has jointly written to some sponsoring institutions expressing concerns about the quality of IPO applications.

According to reports on December 10th, the Securities and Futures Commission of Hong Kong (SFC) and the Hong Kong Stock Exchange (00388) officials jointly wrote a letter to IPO sponsors. The purpose of the letter is to express regulatory concerns about the decline in quality observed in recent new listing applications and certain non-compliant behaviors. The letter, dated December 5th, mentioned the surge in new listing applications for 2025. Many market participants, especially IPO sponsors, are facing an abnormally heavy workload, leading to concerns about the quality of some application materials. Some practitioners may not be familiar with regulatory requirements and/or lack sufficient experience in handling Hong Kong's new listing applications. The report mentioned that a spokesperson for the SFC stated that they, along with HKEX, sent a joint letter to multiple IPO sponsors. A spokesperson for HKEX also confirmed the letter. The spokesperson for the SFC stated that they and the HKEX continue to welcome high-quality companies to list in Hong Kong and support a vibrant capital market ecosystem. The SFC will continue to work closely with the HKEX to maintain the quality and standards of Hong Kong's new listing applications. Data shows that the current size of new stock fundraising in Hong Kong exceeds US$34 billion, expected to reach a four-year high. According to the statistics from the Hong Kong Stock Exchange, approximately 300 companies are currently waiting for listing.