Hong Kong Securities and Futures Commission: Sponsors must effectively fulfill their "gatekeeper" responsibilities.

Chairman Huang Tianyou of the Hong Kong Securities and Futures Commission stated that in the future, the Hong Kong Securities and Futures Commission will uphold clear regulatory principles, ensuring investor protection on one hand and promoting market development on the other hand, achieving a dynamic balance between the two. Take IPOs as an example, the Hong Kong Securities and Futures Commission insists on quality first, not only attracting high-quality companies to list in Hong Kong, but also requiring the industry to improve the quality of disclosure in listing documents, and sponsors to fulfill their "gatekeeper" responsibilities. This is similar to how the Food Safety Centre ensures food quality, not only ensuring that everyone has something to eat, but also ensuring that they can eat safely. Huang Tianyou mentioned that in the past year, the international situation has been constantly changing, and the Hong Kong capital market has shown resilience in the face of headwinds, performing well in new share fundraising, asset and wealth management, among other areas. However, market development often focuses on "quantity," such as trading volume and fundraising amount; but the long-term health of the market depends on the "quality" that is built. Just as for good health, it is important to eat enough, but it is even more important to eat right to live a long life. High-quality services in the financial industry, high-quality financing, and ensuring sustainable development of enterprises and products are far more important than temporary popularity. The regulatory principles are reflected in many measures of the Hong Kong Securities and Futures Commission, including connections with overseas markets, regulatory frameworks for digital assets, and the development of fixed income and currency markets. Different economic cycles have different requirements for quality and pace. In adversity, companies first seek to "eat enough," ensuring enough cash flow to maintain operations and team stability; in prosperity, it is more important to "eat well," carefully selecting opportunities with suitable risk-return profiles. The financial market should also adapt to the times - maintaining stability in adversity and making the most of opportunities in prosperity, making appropriate adjustments between quality and quantity, in order to make informed decisions in turbulent times.