Amendments to the Exchange Listing Rules

Regulatory

11 Jul 1999

The Stock Exchange of Hong Kong has implemented changes to chapters 9, 19 and 19A of the Exchange Listing Rules that deal with application procedures and requirements for listing of equity securities.

The rule changes are made to codify the existing practice and facilitate the efficient and effective review of new listing applications.

The rule changes described herein apply to Forms A1 (in case of new applicants) and listing applications (in case of listed issuers) submitted to the Exchange on or after July 12, 1999.

Chapter 9 - Equity Securities - Application Procedures and Requirements

The principal changes to chapter 9 are set out below.

1.	Provisions are introduced to clarify the requirement for submission of an advanced proof of the prospectus with a Form A1 and the timing for revision of the contents of the proof during the review process. The disclosure of the information required under chapter 11 of the Exchange Listing Rules must be included in the advanced proof of the prospectus. A revised proof of the prospectus which has substantially incorporated the Exchange's comments on the previous proof and any additional information should be submitted to the Exchange at least five clear business days after the submission of the previous proof, unless the earlier submission of the revised proof is requested by the Exchange.
2.	The Form A1 must be submitted with the full amount of the initial listing fee. Provisions are introduced to explain the basis upon which a new applicant will forfeit the initial listing fee and the circumstances in which a new applicant may be required to submit a new Form A1 or a revised timetable.
3.	The Exchange may require an applicant to delay the expected hearing date for the listing application if: the applicant cannot provide the requisite information/documents to the satisfaction of the Exchange in a timely fashion; or any material relating to the proposed listing is released without prior review by the Exchange before the expected hearing date.
4.	Provisions are introduced to codify the practice for certain documents, if applicable, to be lodged on a timely basis with the Exchange for initial review. These documents include any written submission requesting a waiver from connected transaction requirements, the draft of the board's profit forecast memorandum and every written undertaking from the applicant, its shareholders and/or other parties to the Exchange referred to in the listing document.
5.	The timing for submission of documents has been revised. Relevant periods for submission of documents are calculated using business days and the number of days with regard to documentary requirements has been changed.

The Exchange will strictly enforce the requirements for the timely submission of documents. Any documents not submitted according to the requirements of chapter 9 will result in a delay in the Listing Committee hearing.

Chapter 19 - Equity Securities - Overseas Issuers

Chapter 19A - Equity Securities - Issuers Incorporated on the Mainland of the People's Republic of China

As a result of the changes to chapter 9, consequential changes are made to chapters 19 and 19A in order to reflect the relevant changes to application procedures and requirements for overseas issuers and issuers incorporated on the mainland of the People's Republic of China.

Reprinted pages of the Exchange Listing Rules have been distributed to listed issuers and subscribers of the Exchange Listing Rules.

Corporate Communications Department

Updated 11 Jul 1999