Authors: Kishore Bhindi, Carl Fernandes, Donnelly Chan, Denise Fung, Roger Cheng, Terence Lau, Andrew Chung, William Liu, Hwang Hwa Sim

SFC Proposes Market Sounding Guidelines

The SFC is proposing to implement a market soundings regime which could have profound effects on the conversations between the sell-side and the buy-side in relation to potential investments. The proposals would require market sounding and cleansing procedures to be followed if any non-public information on certain potential transactions is shared. A consultation on the proposals is open until 11 December 2023. Our note looks at the key features of the proposals.