Hong Kong Regulatory Update

Skadden, Arps, Slate, Meagher & Flom LLP

Christopher W. Betts Edward Lam

This Hong Kong regulatory update provides a brief overview of the principal Hong Kong regulatory developments in the preceding three months relevant to companies listed or proposed to be listed on The Stock Exchange of Hong Kong Limited (HKEx) and their directors, management and advisers. The updates include HKEx announcements and rule or guidance changes, Securities and Futures Commission (SFC) decisions and updates, and both HKEx and SFC enforcement-related news. In this update we cover:

  • HKEx issues new guidance regarding trading halts;
  • HKEx updates its guidance on dividends in specie of interests in subsidiaries; - HKEx issues new guidance on the continuing obligations of issuers of listed debt securities;
  • HKEx revises its guidance on conditions for waivers from compliance with financial statement requirements in Listing Rule 4.04(1);
  • HKEx updates FAQ relating to disclosure of financial information to conform with new Companies Ordinance;
  • HKEx reports on implementation of Corporate Governance Code and Corporate Governance Report;
  • SFC reminds listed companies of various issues in Takeovers Bulletin Issue No. 34; and - recent enforcement actions and penalties.

We also remind issuers and other parties of the following requirements that will come into effect for financial reporting periods commencing on or after 1 January 2016:

  • the risk management and internal control requirements of the Corporate Governance Code and Corporate Governance Report; and
  • disclosure of additional financial information in alignment with the requirements of the Companies Ordinance and HK Financial Reporting Standards.

Please go here for the full report.