HONG KONG: SFC consultation on exemptions from Hong Kong major shareholdings rules

Wednesday June 18 2014

The Securities and Futures Commission has opened a one-month consultation on proposals to amend the Guidelines for the Exemption of Listed Corporations from Part XV of the Securities and Futures Ordinance (Disclosure of Interests) for Hong Kong major shareholdings.

The proposed amendments would provide two additional categories for exemption under the Guidelines to cover participants of The Stock Exchange of Hong Kong Limited (SEHK) as well as clearing participants of a recognized clearing house that are themselves clearing houses.

The changes are proposed with reference to market participants involved in Shanghai-Hong Kong Stock Connect.

Under Shanghai-Hong Kong Stock Connect, orders from eligible Mainland investors will be routed to SEHK via a securities trading service company established by the Shanghai Stock Exchange in Hong Kong. In addition, China Securities Depository and Clearing Corporation Limited (ChinaClear) will provide Mainland investors with clearing, settlement, custody and nominee services for SEHK-listed shares. The securities trading service company and ChinaClear will each come under the existing disclosure obligations under Part XV of the Securities and Futures Ordinance if they hold at least a 5% interest in an SEHK-listed company, but would be eligible for exemptions under the proposed amendments.

Comments are invited to be submitted before 17 July 2014. Written comments may be sent on line via the SFC site, by email to AmendmentsGuidelinesPtXV@sfc.hk, by post or by fax to 2810 5385.

Click on the above link for more details.