Last month's issuance of IPO advisory licenses rebounded by over 50% month-on-month, but still remains below historical average levels

Bloomberg reported, citing official data, that the Securities and Futures Commission issued 43 new advisory licenses for institutional financing (Category 6 licenses) in March, a month-on-month rebound of 53%, but still far below the historical average of over 100 per month. Institutions holding this license are responsible for listing sponsorship, due diligence, and compliance advisory services, providing advice on corporate capital structure and restructuring.

The report indicated that the licensing activity is a barometer of the health of Hong Kong's capital market. Although the numbers have significantly increased month-on-month, the industry is still readjusting after a period of stringent scrutiny.

Last month, reports indicated that the Securities and Futures Commission has set limits on the number of active projects that sponsors can simultaneously advance, explicitly requiring that the number of active projects being advanced by signing sponsors must not exceed six. Additionally, the Securities and Futures Commission recently conducted a high-profile search of a hedge fund and several brokerage firms in connection with an insider trading investigation