Hong Kong Stock Exchange Calls Out J.P. Morgan
May 05 2016 - 08:50AM
Dow Jones News
Hong Kong's stock exchange cast some potentially unwelcome
attention on J.P. Morgan Chase & Co. after the exchange
returned a Chinese company's application for a spinoff.
The Wall Street bank is the first global investment bank to be
named on a list of sponsors for deals in Hong Kong whose
applications regulators have turned away. The public disclosure of
returned listing applications started in 2014 and is part of an
effort by the stock exchange to boost transparency and make
investment-bank underwriters more accountable for listings.
Hong Kong's stock exchange returned an application by Shenhua
Health Holdings Ltd., a small pharmaceutical arm of Hong
Kong-listed Fufeng Group Ltd., for a spinoff on March 29, according
to the exchange's website last updated in late April.
The application was sent back due to disclosure problems in the
application, according to a person familiar with the situation, who
didn't provide further details. J.P. Morgan was the listing's
sponsor—the bank responsible for the company's listing.
Shenhua Health has the option of resubmitting its listing
application eight weeks after its first attempt.
The Hong Kong stock exchange has returned listing applications
by a total of eight companies since it started disclosing such
information in 2014. Listings sponsored by BOCOM International
(Asia) Ltd., China Everbright Capital Ltd. and Guotai Junan Capital
Ltd. are among the deals whose applications the exchange returned
over the past two years, according to the stock exchange's
website.
Write to Kane Wu at Kane.Wu@wsj.com
(END) Dow Jones Newswires
May 05, 2016 08:35 ET (12:35 GMT)
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