SFC, HKEX clamp down on abuse of rights issues

hong kong central px230
By John Loh
12 Dec 2016

Hong Kong’s market watchdogs are stepping up enforcement against the misuse of rights issues and open offers that substantially dilute the interests of minority shareholders.

The Securities and Futures Commission (SFC) and Hong Kong Exchanges and Clearing (HKEX) are concerned some transactions have not given fair and equal treatment to all shareholders, they said in a joint statement last Friday. 

“Such corporate actions, absent any demonstrable commercial rationale, cast doubt on whether ...

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