HONG KONG: Stock Exchange of Hong Kong Limited Publishes Revised Connected Transaction Rules

Thursday July 24 2014

The Stock Exchange of Hong Kong Limited has published amendments to the connected transaction rules under the Rules Governing the Listing of Securities on the Stock Exchange and the Rules Governing the Listing of Securities on the Growth Enterprise Market of the Stock Exchange.

The revised rules take effect from 1 July 2014.

Key changes include:

• Exemptions for Connected Persons at the Subsidiary Level
• A transaction on normal commercial terms entered into between a listed issuer and a connected person at the subsidiary level will be exempt from the independent shareholders` approval requirement; and
• A director, chief executive or substantial shareholder of an insignificant subsidiary will be excluded from the definition of “connected person”. With the exclusion, transactions between a listed issuer and persons connected with insignificant subsidiaries would fall outside the connected transaction regime.
• Increase Monetary Limit for De minimis Transaction Exemption
• Removing the 1% Cap for the Exemption on Provision of Consumer Goods or Services
• Exemptions for Indemnity or Insurance Against Directors` Liabilities
• Relaxing the Rules with Regard to Transactions With Third Parties

Click here for revised transaction rules for Growth Enterprise Market

Click link above for further details.