HK drafts rules for over-the-counter market for delisted stocks

Hong Kong is drafting rules for an over-the-counter market for delisted stocks, offering investors holding nearly worthless securities a chance to recover some losses, Bloomberg News reported, citing sources.

After initial consultations with market participants, Hong Kong Exchanges & Clearing (0388) and the Securities and Futures Commission are exploring the concept of a “pink sheet market,” Bloomberg said.

Pink sheet stocks are an over-the-counter trading platform for stocks not listed on major exchanges, often involving small cap companies.

Unlike the US model, this platform would provide an exit opportunity for investors looking to sell but would not allow companies to raise new capital, the report said. 

STAFF REPORTER