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:
For further information, please contact:
Venantius Tan, Partner, Morrison Foerster
vtan@mofo.com
John Moore, Partner, Morrison Foerster
johnmoore@mofo.com