Should Hong Kong’s stock exchange make all IPO applications confidential?

Hong Kong Exchanges and Clearing (HKEX) last week proposed its biggest set of listing reforms since 2018 for Asia’s third-largest stock exchange. Delivered in a consultation paper, the reforms aim to further improve the competitiveness of the exchange that topped the world rankings for initial public offerings (IPOs) last year.The bourse operator will collect views on the proposals, which include broadening a special listing regime for innovative companies and opening the door for listings by smaller and more diverse firms, until May 8.Investment Banks and Brokers have piped up in support of a proposal to allow all companies that are pursuing listings to file their applications confidentially – a privilege currently given only to specific types of companies. Market participants believe the reform would attract more listings and enhance Hong Kong as an international financial centre because many other exchanges around the world already keep applications confidential.Here is what you need to know about how the change would affect the market.What is the current situation?Since October 2013, HKEX has required all listing candidates to publish their listing documents, including corporate history, business models and financial information, on the HKEX website once they submit the application to the exchange.