HKEx will implement the new electronic disclosure requirements on 25 June 2007.  Effective that day, a paid announcement in newspapers will be optional so long as the Main Board listed company publishes the full announcement on its own website, in addition to the Exchange's website, subject to the transitional arrangement below. (Paid announcements are already optional for Growth Enterprise Market, or GEM, listed companies.) Under the new regime, documents of listed companies will be published on the HKExnews website/GEM website between 6am and 11pm, Monday through Friday (business days only) and between 6pm and 8pm on the non-business day immediately preceding a business day. However, the publication schedules for different types of company documents, particularly announcements, vary. Documents published by listed companies are available on the Exchange's website for public viewing free of charge.  Implementation of the new regime includes a transitional arrangement.  Companies without their own websites may set up their own websites in the next 12 months, but before that, they must continue publishing the full version of their announcements in newspapers. In the first six months of implementation, Main Board companies that publish announcements on their own websites are required to publish notifications in newspapers informing the public of the publication of their announcements online.
1.	What are the changes for investors when HKEx implements the Electronic Disclosure project on 25 June 2007? Under the Electronic Disclosure project, Hong Kong listed companies are required to submit electronic files of their announcements to HKEx via a designated system for straight-through online publication.  Starting on 4 February 2008, the HKExnews website (www.hkexnews.hk) will be the primary channel through which all listed companies issue their announcements. Listed companies are also required to post announcements on their own websites, subject to the transitional arrangements, such as publication of notifications in newspapers. For investors, HKExnews website will be a one-stop platform where they can access information from all listed companies, including the latest information and archive information. Straight-through submission and publication will allow investors to be informed of the latest information about a listed company in a more timely manner, strengthening market transparency. Greater efficiency in information dissemination will help the media to report on the latest corporate activities of listed companies. This will help provide investors with continued access to listed company information from various news media. Furthermore, listed companies must display all headlines as appropriate in the announcement under the new regime for investors' easy reference. In addition, the project will give listed companies more options in terms of the timing of publication of an announcement. It will reduce the need for share trading suspension and shorten the duration of a suspension.
2.	What benefits will the Electronic Disclosure project bring to investors and the market? For investors, straight-through submission and publication of documents by listed companies will allow prompt disclosure of information on the HKExnews website/GEM website. Electronic disclosure will resolve problems such as unnecessary suspensions which may be required during the course of waiting for an announcement to be published in newspapers. Electronic disclosure will also reduce the need for share trading suspension and shorten the duration of a suspension, hence lowering the opportunity cost of investors. Moreover, as a central database of information from listed companies, the HKExnews website will offer local and overseas investors quick, easy, one-stop access to the information. Electronic disclosure will put the Hong Kong stock market's information disclosure regime on par with that of other major international financial centres, paving the way for further development in the future. (At present,London, New York and Asian securities markets such as Tokyo, Singapore, South Korea and Malaysia have all adopted the model of electronic disclosure. In Europe, according to the Transparency Directive implemented by the European Union (EU) in January 2007, listed companies are required to publish notifiable information that meets regulatory requirements in all EU member states at the same time. The majority of EU members responded to the requirement with electronic disclosure. Shanghai and Shenzhen have also adopted electronic disclosure, but their listed companies are also required to publish announcements in designated newspapers.) Overall, the project will increase the competitiveness of the Hong Kong securities market and increase its appeal to investors.
3.	After the implementation of the Electronic Disclosure regime, how can investors obtain information about listed companies? Investors can access information about listed companies via the following channels: The Latest Listed Company Information section in the HKExnews website and the Latest Company Announcements section in the GEM website. They may also search for announcements or documents of listed companies from the Listed Company Information Search section in the HKExnews website. Sign up for the free* Listed Company News Alert Service on the HKEx website.  HKEx will alert registered users by email and/or mobile phone (via SMS text message) of any announcement submitted by the listed companies they have selected or any disclosure of interest related to those companies that have been uploaded onto the Exchange's website. Each user account may select up to 20 securities. News alerts are issued every 30 minutes between 6:30am and 12:00 midnight each day. Alerts on disclosure of interest filings are issued on 5:30pm each trading day. Investors and others interested in using the News Alert Service are advised to sign up at the following webpage: http://www.hkex.com.hk/investor * The service is provided by HKEx free of charge. If users wish to receive mobile phone SMS messages, they should check with their mobile phone service providers on the availability of the service and the costs involved. Websites of listed companies News reports. HKEx expects that after the implementation of straight-through publication and the abolition of the mandatory requirement for Main Board listed companies to publish the full version of their announcements in newspapers, listed companies will be able to publish announcements on the HKExnews website at an earlier hour making it possible for newspapers to include more listed company information in their editions. Even if listed companies publish their information on the HKExnews website/GEM website as late as 6:00am to 9:00am, electronic media will still be able to report their latest information promptly. Subscribe for information services from information vendors using the Issuer Information Feed.
4.	How can investors have access to information from listed companies if they don't have computers or have no access to the Internet? Investors without access to the Internet can have access to issuers' information via the following: Public libraries: All public libraries in Hong Kong provide free Internet access to library users. There are over 1,000 computers with Internet access designated for public use. HKEx's Public Viewing Room at 1/F, One and Two Exchange Square in Central: The Public Viewing Room houses desktop computers with which investors will be able to search and view issuers' announcements, notices and other documents, and to view the websites of the Securities and Futures Commission.  The area is open between 9:30am and 5:00pm on the trading days of HKEx's securities and derivatives markets. Principal place of business of listed companies: In the first six months of implementation of the Electronic Disclosure project, a listed company that has published a notification in newspapers, the full texts of an announcement on its own website as well as HKEx's website will still be required to make the full announcement available for inspection during business hours at no charge at its principal place of business in Hong Kong, or at a location in the Central and Western District, Wanchai District, Eastern District or Yau Tsim Mong District of Hong Kong.  The inspection period must be for at least 10 consecutive business days.  In some cases, for example, where a corporate communication (e.g. a circular) is to be sent to shareholders, the inspection period must be for at least one month or, if later, until the corporate communication is sent out. A listed company may charge a reasonable fee for providing copies of announcements on request. Reports by news media on listed companies' announcements Advisory services provided by securities brokerages: Investors can always check with their brokers for the latest news from listed companies.
5.	Do investors have to pay to view listed companies' announcements on HKEx's websites? HKEx does not currently charge investors for viewing announcements by listed companies on its websites.  Neither does it plan to do so.
6.	How will the arrangements for suspension and resumption in trading of listed company shares be changed after the implementation of the Electronic Disclosure project? Listed companies shall fulfill their continuing obligation under the Listing Rules to provide timely disclosure of all price sensitive information and ensure the fair distribution of the information. Trading suspension is the tool to address potential and actual market disorder. For instance, where there is uneven dissemination of price sensitive information, trading suspension will allow the listed company to issue an announcement and investors sufficient time to consider the price sensitive information. However, the duration of suspension should be as short as possible. Under the Electronic Disclosure regime, the principles by which the Stock Exchange considers whether a listed company should suspend trading in its shares will not change. Listed companies should evaluate what is price sensitive information according to its own specific circumstances. Any failure to publish in a timely manner any price sensitive information through the channels prescribed in the Listing Rules may result in a suspension. However, as HKExnews website will replace newspapers under the Electronic Disclosure regime as the primary channel to disseminate price sensitive information of Main Board listed companies, the duration of suspensions may be reduced accordingly. Arrangements for suspension and resumption in trading of shares under the Electronic Disclosure project are as follows: (i)  For non price sensitive information: Regardless of the time of publication, there will be no suspension. (ii) Price sensitive information (other than results announcements): Depending on the publication time: No suspension if the announcement is published on the Exchange's website by 11:00pm (or the two hour submission window on a non business day before a business day).  Half day suspension if the announcement is published by 9:00am. Trading resumes when the afternoon session begins (2:30pm).   (iii)   Results announcements: According to the prevailing rules, listed companies shall inform HKEx and the market at least seven days before publication of its results announcements of the date on which its board meeting to discuss the results announcements will be held. Therefore, the market and investors should have been informed in advance of the day on which a listed company intends to publish its results announcement. Under the amended Listing Rules, issuer results announcements must be published as soon as possible, but in any event, not later than the time that is 30 minutes before the earlier of the commencement of the morning trading session or any pre-opening session of the next business day after approval by the Board.  This means that under the Electronic Disclosure regime: Issuers' results announcement deadline may be extended from 11:00pm of the day of board meeting to 9:00am on the next business day. Suspension is not required if the results announcement is published during the morning window. The new practice is consistent with the current suspension practice which allows results announcements to be published during the lunchtime publication window. Under the current regime, trading can resume in the afternoon session (which starts at 2:30pm) if listed companies publish results announcements during the lunchtime publication window (ie between 12:30pm and 1:30pm). Where the morning deadline is missed, the results announcement can be made during the lunchtime publication window on the same day, but trading of shares will be suspended for half a day meaning trading will resume in the afternoon session (which starts at 2:30pm). In sum, the new practice will give listed issuers greater flexibility in terms of the timing of announcements, hence reducing the need for suspension and shortening the actual duration of suspension.
7.	If the Exchange's website fails or there is a widespread Internet access problem in Hong Kong, how can investors obtain information about listed companies in order to support their Trading? HKEx enhanced its website and related systems before the implementation of the Electronic Disclosure project, and it installed a back-up system and developed disaster recovery arrangements to ensure business continuity. Before implementation of the project, HKEx performed a series of tests and invited related parties (including listed companies, their agents and information vendors) to participate in the testing and familiarisation sessions. If there is a double failure of the Exchange's website and its back-up website systems, HKEx has made arrangements to disseminate information on listed company announcements in a third party website. HKEx will announce the relevant website when necessary. Furthermore, listed companies are required to publish their announcements on their own websites as required to be established under the Listing Rules, in addition to their publication on Exchange's website. Therefore, investors can access listed companies' latest announcements through the companies' own websites even if Exchange's website fails to provide any services at all. As at June 2007, nearly 70 per cent of listed companies had their own websites. Upon implementation of the Electronic Disclosure project, listed companies without their own websites must establish one within 12 months and continue to publish the full version of their announcements in newspapers during the period they do not have their own website. Moreover, various Internet service providers have been engaged to minimise any negative impact on the Exchange's website of the sub par performance of any single service provider, to ensure stable website service for the public. In cases of widespread Internet access problems in Hong Kong, the impact would not only be limited to the dissemination of issuer information. Various aspects of market operations would also be affected. HKEx may then have to invoke contingency measures and inform market participants and the public of relevant arrangements through any available channels.