| 1. |
Consultation on Periodic Financial Reporting |
On 18 July, HKEx published a consultation conclusions document and rule amendments relating to shortening the current deadlines for half-yearly and annual results announcements by Main Board issuers. |
HKEx continues to work with the Securities and Futures Commission (SFC) on implementation of the consultation conclusions regarding quarterly financial reporting. |
| 2. |
Combined Consultation on Proposed Changes to the Listing Rules |
The consultation period closed on 7 April and there were over 100 submissions. All responses are now being analysed. The views expressed by the respondents will be taken into consideration with a view towards balancing their concerns with necessary enhancements to Hong Kong's regulatory regime. |
The minor Listing Rule amendments took effect on 1 September.
Recommendations have been made to the Listing Committee on Listing Rule amendments relating to 15 out of the 18 substantive policy issues contained in the consultation paper. Amendments relating to 13 issues have been approved by the Board of the Stock Exchange and three issues have been approved by the Board of the SFC. Amendments relating to the remaining issues will be presented to the Stock Exchange and SFC boards for approval respectively in due course. |
| 3. |
Web Proof Information Pack (WPIP) |
The Stock Exchange and the SFC have been reviewing the pilot scheme and may formally codify the WPIP requirement by amending the Listing Rules. |
The Stock Exchange and the SFC are in advanced stages of finalising the joint review of the pilot scheme launched on 1 January this year for posting a WPIP on the HKEx website prior to the issue of an IPO prospectus with a view to codifying the requirement to post a WPIP in the Listing Rules by the end of this year. |
| 4. |
Strategic Review of the Listing Rules |
Not included in this issue. |
The HKEx Board has engaged a consultant to conduct a strategic review of the Listing Rules and their application. The overall objective of the project is to review the existing listing regime (including the rules and related procedures) with a view to identifying possible means of enhancing the competitiveness of the Stock Exchange as an international listing venue, while taking into account the need to maintain the quality of Hong Kong’s securities market. |
| 5. |
Review of Chapter 18 of the Listing Rules |
Not included in this issue. |
HKEx has engaged external mineral consultants to study Chapter 18 of the Listing Rules and comparable rules and practices in other jurisdictions relating to listing requirements and continuing disclosure obligations applicable to mineral and exploration companies. The external consultant’s recommendations will serve as the basis upon which HKEx expects amendments to Chapter 18 will be made. |
| 6. |
Review of Auction Trading Mechanism in the Securities Market |
HKEx plans to publish a consultation paper later this year on possible enhancements to the Closing Auction Session, including use of a random closing mechanism. |
The HKEx Board approved a draft consultation paper prepared by HKEx executives on the review of the Auction Trading Mechanism in the securities market at its meeting on 17 September. However, the timing of the market consultation will only be considered when market conditions stabilise. |
| 7. |
Exploration of New Financial Products / Services and Review of Existing Products / Service |
Gold-related Products
HKEx continues to work with product issuers and fund managers to facilitate the listing of gold and other commodities-related structured products and Exchange Traded Funds. |
The first gold Exchange Traded Fund was listed on the Stock Exchange on 31 July.
HKEx continues to work with product issuers and fund managers to facilitate the listing of gold and other commodities-related structured products and Exchange Traded Funds.
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Gold Futures
The rules and regulations in relation to gold futures have been approved by the SFC. HKEx plans to reintroduce gold futures trading in the Hong Kong derivatives market on 20 October.
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Gold futures commenced trading on 20 October. |
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HKEx announced on 21 July plans to invite applications for non-transferable Hong Kong Futures Exchange Trading Rights from members of Hong Kong’s Chinese Gold and Silver Exchange Society (CGSE) or their designated affiliates, provided they meet certain criteria, to encourage gold market professionals' participation in the trading of the gold futures. The plan requires regulatory approval of the related amendments to the Hong Kong Futures Exchange (HKFE) Rules.
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The SFC has approved the proposed amendments to the HKFE Rules in relation to HKFE Trading Rights. Comments from Hong Kong’s Secretary for Constitutional and Mainland Affairs on the proposal are pending. The initiative is subject to review by the Secretary because of its potential impact on voters in the financial services functional constituency of the Legislative Council. |
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Emissions Products
HKEx is continuing to assess the likely demand for emissions trading and considering possible options. |
HKEx plans to introduce a futures contract on Certified Emission Reductions (CERs) in its derivatives market as a first step into the emissions trading business. The tentative timeframe for the launch of CER futures is the middle of next year. |
| 8. |
CCASS/3 Capacity and Technology Upgrade |
The technology upgrade of the CCASS/3 middle-tier system is progressing well and HKEx plans to complete it in August.
The technology upgrade facilitates system integration, as well as securing quality support from vendors, thereby safeguarding the reliability and stability of the system.
The technology upgrade of the CCASS/3 middle-tier system is the final part of the CCASS/3 capacity and technology upgrade. |
The CCASS/3 middle-tier technology upgrade and servers consolidation were successfully completed in August. |
| 9. |
Review of Vendor Licensing Procedure and Requirements |
Approved real-time services provided by information vendors with MDF, PRS, Stock Options and IIS (Issuer Information feed Service) licences will be posted on the HKEx website for public reference by the end of the third quarter. |
The list of approved real-time services was posted on the HKEx website in September. |
| 10. |
Price Reporting System (PRS) Capacity Upgrade |
Not included in this issue. |
The PRS capacity upgrade was successfully completed on 19 July. The PRS is now capable of supporting up to 2,200 messages per second (mps), up from 900 mps before the upgrade. |
| 11. |
Market Data Feed (MDF) Capacity Upgrade |
Not included in this issue. |
The increase of the MDF’s broadcast rate from 300 to 500 stock page updates per second was successfully completed on 1 August. The increased broadcast rate, which was introduced to match an enhancement to AMS/3, took effect on 4 August. |
| 12. |
Request for Expression of Interest (RFI) in Developing a Business Model for Free Dissemination of Basic Real-time HKEx Market Prices on Websites |
Not included in this issue. |
The RFI was posted on the HKEx website on 18 September and has been published in two newspapers in Hong Kong and two on the Mainland. The deadline for responses to the RFI was noon, 17 October. More than 30 expressions of interest were received and are now being reviewed. |
| 13. |
Market Data Collaboration Programme with Shanghai Stock Exchange |
Not included in this issue. |
Subsidiaries of HKEx and the Shanghai Stock Exchange entered into an agreement on 20 October on a market data collaboration programme. The objective of the programme is to assist investors interested in shares of issuers that have listed in both Hong Kong and Shanghai by raising the issuers’ transparency in the two markets. The two-year programme will come into effect on 1 January next year. |