The orchid seller that prompted a sea change in Hong Kong IPOs
— Financial Times
Heard the one about the orchid king and the sports fabric maker? The former lasted a year as a public company in Hong Kong, the latter 64 days. Both were undone after it emerged that they grossly overstated revenues in their listing documents. Under new rules proposed on Wednesday, sponsors of initial public offerings could be sued or even prosecuted for misstatements. About time.