Hong Kong’s regulators try to push back against Chinese market practices

HONG KONGIPOSFCSFC is where China meets the outside world. The territory has long been a training ground for mainland Chinese bankers hoping to take on the planet. But recently it is Wall Street banks that are being schooled in Chinese practices. As companies from the mainland have come to dominate initial public offerings (s) and bond issuances in the territory, so too have mainland methods crept into the underwriting process behind the deals.Western banks have decried the shift, claiming it hampers price discovery. Global investors are also up in arms about what they say are inflated stock and bond offerings. Hong Kong’s Securities and Futures Commission () is attempting to address the clash. It has released a consultation paper that proposes codifying Western norms. The results of the consultation are expected in coming weeks and could add a new set of rules to the ’s existing code of conduct for bankers. Whatever the outcome, it is sure to stir controversy.