13 October, 2012


Legal News & Analysis – Asia Pacific – Hong Kong – Capital Markets


In July 2012, the Exchange published a listing decision setting out the disclosure requirements for applicants engaged in the pawn loan business in the PRC. They include, but are not limited to:

• compliance with laws applicable to the pawn loan industry, including disclosure of non-compliances; 
• loan and customer profiles and major income streams; 
• risk management and internal controls; 
• collateral valuation; 
• loan collection; 
• source of funding; and
• advances to entities and notifiable transactions. 
In addition, as the pawn loan industry is strictly regulated in the PRC, an applicant’s interests in such business typically operate under various structured contracts. Hence, the applicant should also ensure that its business arrangements and listing document disclosures properly follow the guidance set out in Listing Decision 43-3. 
For a copy of the listing decision LD33-2012, please follow the link: http://www.hkex.com.hk/eng/rulesreg/listrules/listdec/Documents/ld33-2012.pdf.


For further information, please contact:
Tony Grundy, Partner, Morrison Foerster
John Moore, Partner,  Morrison Foerster


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