Hong Kong SFC (20/3/25): "The Securities and Futures Commission (SFC) today issued additional guidance in a circular for licensed corporations (LCs) on IPO subscription and financing services to enhance their risk management practices and protect investors from undue financial risks. This came after the SFC identified deficiencies in a recently-completed review of the IPO financing activities of selected LCs. In particular, some of the LCs were found to have engaged in imprudent and aggressive IPO financing practices by accepting subscription orders that exceed their clients' financial capabilities. In some cases, the LCs primarily focused on the subscription levels or anticipated subscription rates of IPO stocks rather than the financial positions of clients, which could result in over-leveraging for clients and subject LCs themselves to an increased client default risk. The additional guidance in the circular sets out the SFC's expected standards of conduct and control measures for LCs.