Hong Kong Regulatory Update

Skadden, Arps, Slate, Meagher & Flom LLP

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 a guidance letter on “shell company” listings
  • New listing decision regarding reliance on unrealized fair value gains to meet the profit requirement in a spin-off proposal
  • New listing decisions regarding reverse takeovers
  • New listing decisions regarding sufficiency of operations or assets after a major disposal as required under Rule 13.24 of the Hong Kong Listing Rules
  • New listing decisions explaining the reasons for rejection and return of certain listing applications in 2015
  • HKEx issues a guidance letter for issuers subject to market commentaries or rumors
  • HKEx issues a guidance letter on bonus issues of shares
  • HKEx publishes its latest listing committee report
  • HKEx reports on its review of listed issuers’ corporate governance practice disclosure in annual reports for the year ended March 2015
  • SFC reminds issuers to keep trading suspensions to the minimum
  • Guidance on mandatory offer obligation waivers in acquisitions of voting rights by members of a concert group
  • SFC issues a corporate regulation newsletter regarding publishing announcements and disclosure of inside information by listed companies
  • Recent enforcement actions and penalties

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