Hong Kong Exchanges and Clearing Limited (HKEx) welcomes the publication of the report of the Panel of Inquiry on the Penny Stocks Incident. It acknowledges that there is room for improvement in a number of areas and accepts in principle the Panel's recommendations. It will work on their implementation following consideration by the HKEx Board and the Listing Committees. HKEx will continue to work closely with the Government and the Securities and Futures Commission to improve the operation of the three-tiered regulatory system.
Once again, HKEx wishes to extend its apologies to the public for the adverse market reaction to the publication on 25 July of its consultation paper on inter alia the penny stocks.