The people who walked through this particular back door at least have a track record. Kan himself is no tyro in the tech game. Some in Hong Kong fret that investors are not getting adequate information. With initial public offerings, companies are required to file business plans and warn potential shareholders of negative factors that may affect performance. None of these apply to backdoor listings.
Investors have to rely on announcements by the new shareholders.
The authorities should protect investors from outright charlatans. At this point, many Hong Kong punters could not care less. They are far too focused on the next backdoor listing. Trading in the stock has been suspended since Jan. 24. There is concern about stunting the development of GEM, Hong Kong's answer to technology-laden Nasdaq.