Update No. 106

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

Update No. 106

March 2012

Dear Sirs,

Listing Rule amendments to the Corporate Governance Code and associated Listing Rules

We enclose reprinted pages of the Listing Rules and the filing instructions. The reprinted pages incorporate amendments to implement the remaining proposals in the Consultation Conclusions on Review of the Corporate Governance Code and Associated Listing Rules published on 28 October 2011.

We have amended the Listing Rules to:

•   require independent non-executive directors to constitute one-third of an issuer's board.Issuers must comply with this Rule by 31 December 2012;
•   require issuers to set up a remuneration committee with specific terms of reference and the committee's chairman and a majority of the members to be independent non-executive directors;
•   require issuers to publish the procedures for shareholders to propose a person for election as a director on their websites;
•   require issuers to publish their constitutional documents on the Exchange's website and on their own;
•   merge Appendix 23 ("Corporate Governance Report") with Appendix 14 ("Corporate Governance Code") and introduce new and revised Principles, Code Provisions and Recommended Best Practices; and
•   introduce new and revised disclosure requirements for the Corporate Governance Report.

Coming into effect

The amendments will come into effect on 1 April 2012.

Please click HEREHERE to see the amendments to the Main Board Listing Rules relating to the corporate governance review.

Yours faithfully,

For and on behalf of
The Stock Exchange of Hong Kong Limited

Mark Dickens JP
Head of Listing