Jurisdiction - Hong Kong
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Revised Property Valuation Requirements.

15 February, 2012

In October 2011, the SFC and the Exchange jointly published the consultation conclusions on proposed changes to property valuation requirements for listing applicants and listed issuers. 
 
New and less onerous property valuation requirements for listing applicants and listed issuers have taken effect since January 1, 2012. 
 
The following property interests are now exempted from valuation requirements:
 
Listing applicants  Listed issuer
 
For interests in non-property activities 
(i.e., holding of properties for own 
use):  property interests with individual 
carrying amount below 15% of the 
applicant’s total assets.
 
For interests in property activities 
(i.e., holding/developing properties for 
subsequent sale or as investments): 
property interests with individual 
carrying amount below 1% of the 
applicant’s total assets, subject to 
the total carrying amount of property 
interests not valued, must not exceed 
10% of its total assets
 
Property interests with individual 
carrying amount below 1% of the 
applicant’s total assets, subject to 
the total carrying amount of property 
interests not valued, must not exceed 
10% of its total assets
 
Property interests held under operating 
leases
Property interests held under operating 
leases.
Property interests ancillary to mining 
activities exempted if the mining 
activities and ancillary property interests 
have been valued as a business or an 
operating entity
 
Property interests ancillary to mining 
activities exempted if the mining 
activities and ancillary property interests 
have been valued as a business or an 
operating entit
 
 
Exempted property interests of an 
acquisition/disposal target listed on 
the Exchange (except for a connected 
transaction).
Exempted existing property interests 
of the issuer for very substantial 
acquisitions
 
The timing reference point for categorizing a property interest into property activities or nonproperty activities should be the prospectus date. The effective date at which the property was valued will be maintained at not more than three months before the prospectus date.  
 
For details of the consultation conclusion, please follow the link:
 
 

 

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