100+ Free HKSI Paper 16 Practice Questions

General framework

Background to the sponsor regulatory regime and Hong Kong's primary capital market, going public, the role of the sponsor, legal considerations, the Corporate Finance Adviser Code of Conduct, related roles such as underwriters and compliance advisers, and the powers of the SFC and SEHK.

Listing Rules and the IPO listing process

Methods of listing and offering mechanisms, the basic criteria for initial and secondary listings on the SEHK, content requirements for listing documents, directors' obligations, the Guide for New Listing Applicants, the IPO process, and mechanisms such as allocation, clawback and price stabilisation.

Preparation for an IPO assignment

Resources, systems and internal controls a sponsor must have to accept and execute an IPO engagement, reporting lines, record-keeping obligations, vetting of proposed mandates, the functional role of Principals and Transaction Teams, and the scope of a sponsor's authority as manager of an IPO.

Preparation for a listing application

Obtaining assignments and the terms of a sponsor engagement, working with multiple sponsors and other parties, sponsor independence, advising the applicant, assessing suitability (including special rules for PRC issuers), ESG standards, and the sponsor's disclosure and communication responsibilities with regulators.

Due diligence

The laws and rules governing the listing document-cum-prospectus, the concept and importance of due diligence, the regulations governing how due diligence is conducted, professional scepticism, verification, the use of experts and other third parties, and preparing the Management Discussion and Analysis (MD&A).

After prospectus issuance

Assessing the quality of sponsor work, the role and appointment of compliance advisers, lessons from regulatory case studies, and the integrity expected of sponsors together with the consequences of inadequate sponsor conduct.