HONG KONG: SFC Publicly Censures China Life Insurance Company Limited for Breaches of Takeovers Code

Friday August 4 2017

The Securities and Futures Commission (SFC) has publicly censured China Life Insurance (Overseas) Company Limited (China Life) as a result of its failure to disclose its dealings in the shares of Glorious Property Holdings Limited (Glorious Property) in contravention of the Code on Takeovers and Mergers (Takeovers Code).

Between 9 May and 5 August 2016, China Life executed 2,139 trades in Glorious Property’s shares during an offer period and failed to make public disclosures of these dealings as required by Rule 22 of the Takeovers Code. During this time, China Life held more than 5% of Glorious Property’s issued shares and was therefore an associate of the company.

The SFC has issued a reminder to practitioners and parties who wish to take advantage of the securities markets in Hong Kong that they should conduct themselves in matters relating to takeovers and mergers in accordance with the Takeovers Code. In particular, associates must report their dealings in the offeree company (or offeror company in the case of a securities exchange offer) during an offer period in accordance with Rule 22 of the Takeovers Code.

A copy of the Executive Statement can be found in the “Takeovers and Mergers – Decisions & statements – Executive decisions and statements” section of the SFC website.

Click on the above link for further details.