HKEX Rejects Morgan Stanley and J.P. Morgan's IPO Application
The Hong Kong stock exchange has rejected the application of Morgan Stanley and J.P. Morgan to take a Chinese biotechnology firm public.
The IPO application for Akeso has been returned, according to a statement by the Hong Kong Exchange and Clearing late Wednesday. However, no reasons were provided.
This is based on a policy set up from October 2013, where IPO applications that are incomplete will be returned by the exchange. So far, the bourse has rejected 21 applications to both its main board and its GEM market since 2014.
Rejected Applications
Among past rejections, most are local and mainland Chinese banks, such as Guotai Junan Capital and BOCOM International (Asia). J.P. Morgan also made the list for a deal in 2016.
However, there are few signs that being on the list undermines a bank's ability to sponsor deals in the world’s busiest IPO market. China Everbright Capital, having made the list twice, is an example, «Bloomberg» reported.
