Asian stock exchanges: more crucial Tokyo is talking about insider trading. Singapore is battling a company which insisted it did not need the special audit the exchange wanted while Hong Kong is cracking down on weak due diligence by listings advisers. Competition for new listings used to define Asia's bourse battle. At last there is a focus on what exactly is being offered. Hong Kong's decision to fine Mega Capital Asia and ban it from IPO sponsorship for its role in assisting Hontex International to market is the strongest sign yet of regulators" determination. Hontex raised $140m with little fanfare in December 2009. Regulators soon noticed, however: shares were suspended only 64 days after listing amid questions about the veracity of data in its prospectus. The boom in Asian exchanges makes the region's governance increasingly important. New York is still the premier market for raising funds, but while its average deal raised 11 times the amount of those in Hong Kong and Singapore 10 years ago, that has now fallen to just two times and three times respectively. Hong Kong has also held the global IPO crown for the last three three years, raising a collective $120bn since January 2009 - a third more than New York and four times as much as London, according to Dealogic data. After almost any financial boom comes regulation. Just ask the banks. And it cannot be entirely coincidental that regulators" efforts have increased as investor confidence has waned: Chinese companies" share of trading has halved in Singapore during the last 12 months, for example. The danger is that any clean-up is more talk than action - participants feel this is the case in Japan. Investor confidence is based as much in perception as much as reality. Legal actions grind only slowly on but watchdogs can get better at publicising their actions.