Note to subscribers for the amendments to the rules governing the listing of securities (the "Listing Rules")
Update No. 121
Amendments to the Main Board Listing Rules
We enclose reprinted pages of the Listing Rules and filing instructions. The reprinted pages incorporate amendments to implement the proposals of the "Consultation Conclusions on Delisting and Other Rule Amendments" published on 25 May 2018.
We have amended the Listing Rules to:
(i) add a separate delisting criterion to allow the Exchange to delist an issuer after a trading suspension of 18 continuous months;
(ii) allow the Exchange to publish a delisting notice stating its right to delist an issuer if the issuer fails to resume trading within the period specified in the notice, or delist the issuer immediately in appropriate circumstances;
(iii) remove Practice Note 17, which sets out a three stage delisting procedure for issuers without sufficient operations or assets that will no longer be needed after the new delisting process takes effect; and
(iv) provide transitional arrangements for issuers whose securities are under suspension immediately before the effective date of the amendments. The current Rules will continue to apply for issuers currently under Practice Note 17 or having been given a notice period before delisting. Other issuers suspended for 12 continuous months or more may be delisted if they fail to resume trading within 12 months from the effective date. All other issuers will be subject to the new Rules.
There are other Rule amendments to (i) remove a bright line trading halt requirement where a major (or above) transaction has not been announced by an issuer, in which case a trading suspension may still be required if the transaction is inside information, and (ii) expedite the process for the Exchange directing resumption of trading, with a view to keeping any trading suspension to a minimum.
Coming into effect
The amendments will come into effect on 1 August 2018.
Please click HEREHERE to see the amendments to the Main Board Listing Rules.
For and on behalf of
The Stock Exchange of Hong Kong Limited
Chief Regulatory Officer and Head of Listing