The Stock Exchange of Hong Kong announced today (2 August) a new stock code procedure that allows listed companies making a takeover or merger offer to choose the stock code for the merged company in return for a donation to the Community Chest.

A listed company making a takeover or merger offer may choose to adopt the stock code of the other company as its own stock code with effect from withdrawal of listing of the other company.

The offering company will make a donation of $1 million to the Community Chest in return for the selected number.

The Exchange will reserve the chosen stock code for three months. If the takeover or merger does not take place, the stock code reservation will be cancelled and the Community Chest will refund any donation received in respect of the stock code. The new procedure took immediate effect.

A spokesman for the Exchange said the procedure would be of benefit to both the merged company and the public.

Corporate Communications