The Securities and Futures Commission has ordered Hong Kong Exchanges and Clearing, which operates the third-largest stock market in Asia by market capitalisation, to do more to prevent internal conflicts of interests over new listings. The exchange, which was the largest IPO market worldwide seven times in the past 11 years, both approves new listings and earns money from listing fees paid by companies floating on the stock exchange. Removing potential conflicts of interest is a crucial step towards strengthening investors' confidence, which will help HKEX compete with other exchanges such as the Nasdaq in the US as well as the Star Market in Shanghai. "It's the right way forwards as it will upgrade the quality of new listings ... and strengthen Hong Kong's status as an international financial market in the longer term," said Tom Chan Pak-lam, chairman of Hong Kong Institute of Securities Dealers.