SVA Successfully Call Risks Arising from a Surge in IPOs in Hong Kong
On 12 January 2026 Steve Vickers and Associates (“SVA”) issued a Risk Advisory Bulletin to clients and selected media outlets as to significant risks associated with the processing of initial public offerings (“IPOs”) in Hong Kong.
That bulletin noted that Hong Kong’s IPO market had experienced a most welcome surge, but also warned that dangers have grown markedly, as not all listings are of the same quality.
In particular, SVA noted that due diligence standards had slipped in the rush to market, and highlighted how some parties had relied on AI-assisted drafting of prospectuses. Some such listings showed limited evidence of thorough investigation into real-life risks.
Action by the authorities
SVA’s warning has proven prescient. On 30 January 2026 Hong Kong’s Securities and Futures Commission (“SFC”) issued a formal directive tackling “serious deficiencies in the preparation of some listing documents”. The SFC cited sponsors’ potential misconduct and mismanagement of resources amid the IPO surge.
The SFC also suspended the vetting of 16 IPO applications, and required 13 as-yet-unnamed sponsors to conduct comprehensive internal reviews. A link to the announcement can be found at Securities & Futures Commission of Hong Kong.
This intervention underscores the growing strain on quality control within the market. As the South China Morning Post reported, the SFC Chief Executive herself stated:
Some sponsors are overly focused on chasing deals and meeting sales targets, without ensuring they have adequate manpower and resources to maintain the quality of their due diligence and paperwork.
That article added that junior staff had made use of AI tools to draft documents without adequate verification, reflecting precisely the ill-considered practices highlighted by SVA. Needless to say, the risks of weak due diligence standards are especially acute for sponsors, both in terms of reputation, and of financial peril.
SVA’s services
Steve Vickers and Associates (“SVA”) has considerable experience in conducting IPO-related investigations.
In response to client demand, SVA has recently expanded its investigative due diligence offering for sponsors, underwriters, custodians, legal service providers, accountants, investors, and others in the IPO process.
These services protect businesses against just those risks outlined above. SVA’s IPO investigative due diligence services are of particular value in that they help potentially exposed parties understand the real-life nature of the listing company, and can identify and mitigate the reputational, compliance, and integrity risks in question.
Please see attached details about relevant services in further detail:
SVA (www.stevevickersassociates.com) is a specialist risk mitigation, corporate intelligence and risk consulting company. The firm serves financial institutions, private equity funds, corporations, high net-worth individuals and insurance companies and underwriters around the world.