Hong Kong's Securities And Futures Commission Issues Statement On Listing Of Infrastructure Project Companies

There is a high level of interest in the investment return potential of infrastructure projects based in developing markets. For example, the Belt and Road Initiative (Note 1) is a strategy by the Central Government to promote connectivity and long-term development in a region spanning Asia, Africa and Europe. Development banks and others have pointed to the need to mobilise large pools of savings, including those in Asia, to close a significant infrastructure financing gap. Hong Kong is uniquely positioned to facilitate infrastructure investment initiatives, such as Belt and Road, through its capital markets.

The Securities and Futures Commission (SFC) today issued a statement which sets out factors the SFC will take into account when reviewing the proposed listing of infrastructure project companies in Hong Kong. These factors are designed to address potential country and related risks. The objective is to maintain the overall quality of the market whilst providing a pathway for infrastructure project companies to achieve a listing (Note 2).

“Hong Kong’s international profile and reputation as a venue for capital raising put it in an excellent position to take advantage of the opportunities presented by the Belt and Road Initiative,” said Mr Ashley Alder, the SFC’s Chief Executive Officer. “The SFC has a pivotal role to play in helping to establish investor confidence in large-scale Belt and Road projects and we look forward to working with the industry to make them a success.”

Today’s statement also refers to the provisions of the Securities and Futures (Stock Market Listing) Rules, which give the SFC powers to regulate Hong Kong’s listed market. The SFC uses these provisions to protect the investing public and maintain fair and orderly markets, and also to facilitate market development initiatives such as the listing of infrastructure project companies.