HONG KONG: Exchange Publishes Rule Changes to Complement New Sponsor Regulation

Wednesday July 24 2013

The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has published rule changes to complement the Securities and Futures Commission`s (SFC) new regulation on sponsors which will come into effect on 1 October 2013. The new requirements resulting from the rule changes will apply to listing applications submitted on or after 1 October 2013.

As stated in the SFC’s “Consultation Conclusions on the regulation of IPO Sponsors” published on 12 December 2012 (the Conclusions), the Exchange will make appropriate changes to the Listing Rules to implement the proposal to publish the Application Proof1 and will also make appropriate amendments to relevant Listing Rules (together with the rule changes, the Rule Amendments) with a view to bringing the revised rules into force when the Provisions2 become effective. The Conclusions also stated that the SFC would work closely with the Exchange to formulate specific measures to streamline the regulatory commenting and other aspects of the initial public offering (IPO) process. Key features of these measures and the Rule Amendments are set out below.

The Exchange has streamlined the listing vetting process, refined the number of required documents and issued guidance on certain interpretations and procedures, all with a view to making the process more efficient, while maintaining the standards of companies to be listed on the Exchange.

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