Investors prepare to discuss stock exchanges’ governance practices

Changes as the one made by the Hong Kong stock exchange are in the cross hairs of investors willing to discuss the governance rules imposed by the stock exchanges. Representatives of the ICGN – International Corporate Governance Network – have been organizing themselves to explore the topic during ICGN annual conference, to take place in Milan, in June. The WFE – World Federation of Exchanges –, which represents the stock exchanges, informed it will be participating in the debate.
The main topic under discussion will be the race to the bottom move, characterized by the regulatory loosening in favor of increasing the stock exchanges’ commercial attractiveness. Cases like Saudi Aramco’s will come to the fore. The IPO of the Saudi Arabian oil company is very likely to surpass Alibaba’s, both in the capital to be raised and in polemical terms. Several stock exchanges are competing to get the deal, among which the London one – which would be willing to accept a free float as low as 5%, instead of the usual 25%, to get the billionaire offer.