Listing Rules and Guidance: Contents


 
 

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Update No. 86

Note to subscribers for the amendments to the rules governing the listing of securities (the "Listing Rules")

Update No. 86

February 2008

Dear Sirs,

Various amendments to the Listing Rules

We enclose reprinted pages of the Listing Rules. The reprinted pages incorporate:-

•   an amendment to implement an extension, to 2:00 p.m. , of the lunchtime publication window for announcements;
•   an amendment to allow the publication of any type of announcements during the lunchtime publication window; and
•   amendments to provide for the new arrangements for distribution of brokerage on initial public offerings (IPOs) through Autopay and to include expressly the brokerage payment arrangements for eIPO applications to reflect the current market practice.

We also enclose the filing instructions.

Publication of announcements

On 10 March 2008 the current restrictions on the publication of announcements outside of trading hours will be relaxed. At the same time a modified suspension policy will apply as described in our press release dated 1 February 2008.

Currently, only preliminary results announcements, overseas regulatory news, suspension announcements and "standard" and "super" announcements can be published via the HKEx website during lunchtime. From 10 March 2008 issuers will be allowed to publish any type of announcement during lunchtime including announcements containing information that may have a material effect on market activity in and the price of the issuer's listed securities.

Currently the lunchtime window for the publication of announcements ends at 1:30 p.m.. From 10 March 2008 this window will be extended by half an hour to 2:00 p.m..

IPO brokerage

Under the new arrangements for distribution of brokerage on IPOs, brokerage paid by investors is passed on by the issuer directly through Autopay into the bank account of the relevant Exchange Participant. This represents an improvement on the previous practice of distributing brokerage by physical cheques and is conducive to the timely and orderly administration of the IPO process.

The Listing Rules provide for payment of the IPO brokerage to an Exchange Participant or to the Exchange depending on whether or not the successful application form bears the chop of an Exchange Participant. An eIPO does not involve physical application and therefore chopping is not possible. In practice, issuers through registrars still pay the brokerage to an Exchange Participant for an eIPO application which bears the broker number of the Exchange Participant and to the Exchange where the application does not bear a broker number.

The amendments to paragraph 7 of appendix 8 to the Listing Rules provide for the new arrangements for distribution of brokerage on IPOs through Autopay and expressly include the brokerage payment arrangements for eIPO applications to reflect the current market practice.

Coming into effect

The amendments in relation to the publication of announcements will become effective on 10 March 2008.

The amendments in relation to IPO brokerage became effective on 9 July 2007.

Please click HERE to see the amendments relating to publication of announcements.

Please click HERE to see the amendments relating to IPO brokerage.

Yours faithfully,

For and on behalf of

The Stock Exchange of Hong Kong Limited

Richard Williams

Head of Listing