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Hong Kong – Consultation On Consequential Listing Rule Changes In Relation To The PSI Regime.

15 October, 2012

 

In August 2012, the Exchange released a consultation paper in relation to listing rule changes consequential to the implementation of the PSI regime in order to minimize duplication and overlap with the new PSI regime (which will be effective January 1, 2013). 
 
Please note that disclosure obligations under the Listing Rules identify specific circumstances in which an issuer must disclose information to the public, and they are not alternatives to the statutory disclosure obligations under the PSI regime.
 
The main change proposed in the consultation paper will be to remove the existing continuing disclosure obligations in Listing Rule 13.09, which will become part of the statutory regime. In addition, a range of amendments will be made consequential on the removal of these core provisions, as follow
 

Key proposals

 

Current Listing Rules Proposed Changes
13.09 (general obligation of disclosure)
Deleted, except for Rule 13.09(1)(b) in relation to the obligation to avoid a false market. 
Revised 13.09 will clarify that such obligation will include the obligation to correct a false 
market. 

Note 1 to Rule 13.09 (no privileged dealing position)

To become new Rule 13.06B
Note 2 to Rule 13.09 (duty to preserve confidentiality of inside information) To become new Rule 13.06A
Notes 9 and 10 to Rule 13.09 (material matters which affect profit forecasts) To become new Rules 13.24B(1), (2)
Note 1 to Rule 13.10 (standard announcement in 
response to Exchange’s inquiries)
 
Directors to confirm having made “due inquiries”, and that there is no inside information 
to be disclosed under Part XIVA of the SFO, before issuing such announcements. 
If the Exchange’s inquiries do not relate to unusual trading movements, confirmation that 
the issuer is not aware of any reasons for unusual movements will not be required. 

 
13.09(2) (information disclosed to other stock exchanges) To become new Rule 13.10B

 

 

New Listing Rules 
Description
13.10A (obligation to apply for trading halts)
Obligation to apply for a trading halt when disclosure under Rule 13.09 cannot be 
promptly made, or where confidentiality may be lost in respect of inside information 
under Part XIVA of the SFO and such information cannot be announced promptly.   
1.01 (definitions)
New defined terms: “inside information” and “Inside Information Provisions” (this refers 
to Part XIVA of the SFO).
 
References to the term “price sensitive information” will be replaced by “inside 
information”.  

 

For a copy of the consultation paper, please follow the link:  http://www.hkex.com.hk/eng/newsconsul/mktconsul/Documents/cp201208.pdf

 

 








For further information, please contact:
 
Tony Grundy, Partner, Morrison Foerster
tgrundy@mofo.com
 
John Moore, Partner,  Morrison Foerster
johnmoore@mofo.com

 

 

 

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