Friday, June 3, 2011

The HKex whorehouse

Compromising what little integrity the HK market has by exempting Resourcehouse which has never made a profit (probably never will) from it's own rules...

Under rule 8.05(1)(a), in order to meet the existing profit test, a new applicant must have an adequate trading record. This means that an applicant, or its group (excluding any associated companies and other entities whose results are recorded in the applicant’s financial statements using the equity method of accounting), as the case may be, must satisfy the following requirement:
“a trading record of not less than three financial years (see rule 4.04) during which the profit attributable to shareholders must, in respect of the most recent year, be not less than HK$20,000,000 and, in respect of the two preceding years, be in aggregate not less than HK$30,000,000. The profit mentioned above should exclude any income or loss of the issuer, or its group, generated by activities outside the ordinary and usual course of its business;”

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