Commenting on whether SGX was being high-handed in its regulation of listed companies by demanding that China Sky perform a special audit in the absence of any evidence of fraud, SMU Assistant Professor of Law Jeremy Leong said that it was a test case that "imposed costs on everyone". However, he added that the situation was all part of the growing pains of an emerging financial market, and that SGX’s action might boost confidence in the local market and deter low-quality companies from seeking a listing in Singapore. Assistant Prof Leong also advised that local regulators have to avoid been overreaching and recognise that special audits impose a significant cost on small companies. "The challenge for SGX is to make sure it is consistent, that it is very clear and very transparent, going forward," he said.