Hong Kong Exchanges and Clearing Limited (HKEx) today (Friday) published a consultation paper on a new structure for listing decision-making.
The consultation paper explains the proposed new structure and sets out draft amendments to the Main Board and Growth Enterprise Market (GEM) Listing Rules (together, the Rules) that would implement the structure.
"In the March 2004 Consultation Conclusions on Proposals to Enhance the Regulation of Listing, the Government extended an invitation to HKEx to consider how suggestions made during the Regulation of Listing consultation process concerning the composition and operation of the Listing Committee could be implemented. This consultation paper sets out proposals developed by the Listing Division in consultation with Securities and Futures Commision staff", HKEx's Head of Listing, Richard Williams, said.
Mr Williams explained that "the aim of the consultation proposals is to put in place a clearer and more efficient administrative framework for decision-making in listing matters, such as listing applications and suspected breaches of the Rules, whilst also preserving the checks and balances necessary to minimise and manage regulatory risk including real or potential conflicts of interest within HKEx."
HKEx seeks comment on the consultation paper by 22 April 2005.
The conclusion paper can be downloaded from the HKEx website at http://www.hkex.com.hk/eng/newsconsul/mktconsul/marketconsultation.htm. Copies are also available from the HKEx offices at 11/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong.
Background
Since July 1997, the Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of HKEx, and HKEx have been considering the scope for improvement to its administrative structure for making decisions about listing applications and breaches of the Rules.
In news releases dated 6 May 2002 and 24 July 2002 HKEx set out a proposed new structure. However, development of the proposed new structure was put on hold in light of the recommendations of the Expert Group and the subsequent consultation on the Regulation of Listing.
With the determination of the issues relating to the Regulation of Listing, it is now appropriate to recommence the consultation process regarding HKEx's listing decision-making structure.
The proposals set out in the consultation paper are informed by developments since 2002 including the Government's March 2004 Consultation Conclusions on Proposals to Enhance the Regulation of Listing.
The consultation proposals and draft Rule amendments have been prepared in consultation with the Securities and Futures Commission.
Summary of the consultation proposals
The consultation proposals address, amongst other things: