Monday February 20 2017

News Source: Global Exchanges

Focus: Listing Rules

Type: General




The Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited, has announced revised themes for enforcement of the Listing Rules and published a revised policy statement on its approach to enforcement (Enforcement Policy Statement).

Themed Approach to Enforcement

In line with the objectives for enforcement set out in the Enforcement Policy Statement of 2013, the Exchange adopted five themes for enforcement activity in 2014 to focus resources on particular areas of concern.

Following a review, the Listing Committee has approved a modification and expansion as follows:

  • Directors` performance of fiduciary duties, and failure of issuers and directors to cooperate with the Exchange`s investigation, remain as themes.
  • The initial themes concerning late financial reporting resulting from internal control deficiencies and “heavily” qualified accounts have now been merged and expanded to become financial reporting – delays, or internal controls and corporate governance issues. As for the initial theme concerning failure of issuers (subject to prolonged trading suspension) and their directors to address the Exchange`s concerns in a timely manner to procure trading resumption as soon as possible, it has now been expanded to become delayed trading resumption which also covers prolonged trading halts.
  • Inaccurate, incomplete and/or misleading disclosure in corporate communication; failure to comply with procedural requirements in respect of notifiable/connected transactions; and repeated breaches of the Listing Rules are introduced as new themes.

It should be noted, however, that notwithstanding this themed approach to investigation, the Exchange has continued and will continue to pursue any other breaches of the Listing Rules that may demonstrate sufficiently egregious conduct.

Revised Enforcement Policy Statement

The current Enforcement Policy Statement was published on 13 September 2013. The Statement has been reviewed and a number of administrative changes made to reflect current practice and bring the statement of enforcement policy up to date.

The revised Enforcement Policy Statement is available on HKEX website.

Click on the link above for further details.