The Stock Exchange of Hong Kong, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has proposed allowing issuers to release announcements on the HKEx or GEM website during stock exchange trading hours, and introducing trading halts.

The proposal is included in a consultation paper on Proposed changes to practices on Dissemination of Listed Issuers' Announcements, issued today, 12 March 2002.

Other proposals include releasing all Main Board and GEM announcements on the HKEx and GEM websites on the half hour following receipt of an announcement from an issuer. Announcements will be released in batches every half hour on the half hour; and trading resumptions will only take place on the half hour.

The stock exchange also proposes that a trading halt of 60 minutes be observed following all company results announcements; and a trading halt of 120 minutes following receipt of announcements requiring approval by the stock exchange.

However, trading halts are not necessary for the publication of standard announcements made in response to unusual movements in share price and turnover under paragraph 39.2 of the Main Board Listing Rules and standard Rule 17.11 Note 2 of the GEM Listing Rules. Public announcements not requiring approval by the stock exchange before their release, which include notices of general meetings and change of company directors, can also be released for publication on the HKEx and GEM websites anytime without trading halts.

Karen Lee, HKEx's Head of Listing, Regulation and Risk Management, said the changes were necessary to enable more timely disclosure of listed issuers' information through the HKEx and GEM websites. "Given today's technological advances, the status of Hong Kong as an international financial centre and the increasing globalisation of share trading activities, there is a clear need for listed issuers' announcements to be more speedily disseminated. The proposal will help improve market efficiency," she said.

"We propose different lengths of trading halts for different types of announcements to strike a balance between the need to release listed issuers' announcements on a timely basis and the need for the public to digest the contents of announcements. The length of trading halts should depend upon the nature and complexity of the announcements," Lee added.

Copies of the consultation paper and questionnaire were despatched to listed issuers and market practitioners today. Copies are available at the office of HKEx at 11/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong. The consultation paper can also be viewed at or downloaded from the HKEx website at www.hkex.com.hk.

Comments on the paper can be submitted to the stock exchange by completing and returning the questionnaire attached to the paper, or via the electronic questionnaire available at www.hkex.com.hk. Responses should arrive no later than the close of business on 2 April 2002.