Ms Julia Leung at a Hong Kong Securities and Investment Institute event discussed the need to eliminate harmful practices, such as ramp and dump scams, in the stock market to achieve sustainable development. These scams involve fraudsters with various roles who target low trading turnover and small-cap stocks, causing substantial financial losses for investors and hurting market liquidity and valuation. While the Hong Kong stock market has grown over the past decade, the lack of liquidity for small-cap stocks suggests a lack of investor demand. The Securities and Futures Commission (SFC) has taken actions to tackle corporate misconduct through policy changes, increased market surveillance, and enforcement actions. The amendments of the Listing Rules aims to attract quality small-cap companies and improve the quality of small-cap stocks to attract institutional and retail investors. Investor education is also important to prevent scams and improve investor culture to support the sustainable development of Hong Kong’s market.
Resource:
https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR74
