TY - JOUR
AU - Lim, Ernest
AB - Capital Markets Law Journal, Vol. 8, No. 2 177 Sponsors’ prospectus liability in initial public offerings in Hong Kong Ernest Lim* Key points This article critically analyses the current and controversial issue of whether sponsors in Hong Kong should be subject to civil and criminal liability for misstatements in an IPO prospectus under the Companies Ordinance. It argues that the existing legal regime provides insufficient deterrence and advances policy justifications for imposing liability. It then examines the principal objections against the imposition of liability—negligible deterrence and over-deterrence—and finds them unpersuasive. It also specifically addresses the concerns arising from making sponsors criminally liable. 1. Introduction The volume and frequency of initial public offerings (IPOs) are a significant factor in contributing to Hong Kong’s position as a world leading financial centre. Hong Kong has been one of the world’s top three largest IPO markets in the past few years, attracting issuers from China and overseas including the world’s largest aluminium producer, Rusal and one of the world’s leading fashion retail companies, Prada. Sponsors play a critical role in IPOs in Hong Kong. Subject to the Listing Rules promulgated by the Hong Kong Stock Exchange, they are required to ensure that proper 
TI - Sponsors prospectus liability in initial public offerings in Hong Kong
JF - Capital Markets Law Journal
DO - 10.1093/cmlj/kmt007
DA - 2013-04-28
UR - https://www.deepdyve.com/lp/oxford-university-press/sponsors-prospectus-liability-in-initial-public-offerings-in-hong-kong-vsck8Rdk10
SP - 177
EP - 204
VL - 8
IS - 2
DP - DeepDyve
ER -