| 1. |
Consultation on Periodic Financial Reporting |
To ensure a regular flow of timely information concerning issuers’ financial performance and position, the Listing Committee believes the Listing Rules should be enhanced to require issuers to report to the market on a quarterly basis. Under such a regime the Listing Committee views quarterly financial reporting as a long term goal. As an interim enhancement the Stock Exchange will explore alternative approaches and conduct a further consultation with stakeholders on alternatives to quarterly financial reporting. The Listing Committee notes and welcomes the Securities and Futures Commission (SFC) Executive’s support for further engagement on this important topic.
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The Listing Committee proposes to consider this issue further towards the end of this year. |
| 2. |
Combined Consultation on Proposed Changes to the Listing Rules |
Consultation conclusions in respect of the three issues that remain under assessment will be published in due course. |
The Listing Committee and Stock Exchange Board have approved the Consultation Conclusions and rule amendments relating to self-constructed fixed assets which, subject to the SFC’s approval, will be published shortly.
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| 3. |
Web Proof Information Pack (WPIP) |
In progress. Revised logistical arrangements have been introduced to enable WPIPs to be submitted through the e-Submission System.
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In progress. |
| 4. |
Strategic Review of the Listing Rules |
An action plan has been drawn up for the Listing Committee to consider in detail the recommendations of the consultant. Initiatives endorsed by the Listing Committee will be pursued as a high priority.
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Progress has been made on streamlining the listing process (see item 6 below). |
| 5. |
Review of Chapter 18 of the Listing Rules |
The external mineral consultants have finalised their report. The Listing Committee is reviewing the consultants’ recommendations, which will form the basis of market consultation. Market consultation materials are targeted for publication in the first half of this year.
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Considered on a preliminary basis by the Listing Committee. Now proceeding to the drafting stage. |
| 6. |
Consultation on Proposed Changes to Filing and Checklist Requirements for Listing of Equity Securities
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Not included in this issue. |
The consultation paper was published on 26 June this year. The deadline for submissions is 31 August this year. The Listing Division is streamlining its listing process to reduce unnecessary costs, delay and paper burden.
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| 7. |
Exploration of New Financial Products / Services and Review of Existing Products / Services |
Options with Flexible Features
HKEx has started the preparatory work to enhance the system for the proposed facility. HKEx will discuss its proposal with target market participants with an aim to verify the feasibility and to refine the draft operational model. HKEx will seek SFC approval at the appropriate time for the necessary rule amendments.
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HKEx aims to release an information paper regarding the arrangements and procedures in facilitating the execution of options with flexible features through HKATS in the third quarter of this year. |
Emissions Products
HKEx plans to conduct a public consultation this year and invite comments on questions about the possible introduction of Certified Emission Reduction futures and other issues. |
The Consultation Paper on Certified Emission Reduction Futures was published on 26 June this year. The deadline for submissions is 31 August this year.
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Volatility Index-related Products
Not included in this issue. |
HKEx is working with index companies to develop a volatility index for its securities market based on stock index options prices with a view to provide a benchmark of volatility for the marketplace.
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| 8. |
Provision of Free Real-time Last Trade Prices on Websites |
Evaluation of the 12 proposals has been completed. HKEx executives are having further discussion with the short-listed companies with a view to finalising the terms of the service in the next few months. It remains HKEx’s aim to launch the new service in the second half of this year. |
The free real-time market data to be available through the designated websites now includes nominal prices in addition to last trade prices. Key service terms have been finalised for the most part with the six short-listed candidates (three from the Hong Kong market, three from the Mainland market). HKEx expects the new service to be soft-launched in the fourth quarter of this year. The official launch is likely to be on 1 January next year.
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| 9. |
T+2 Finality for Stock Exchange Trades and Settlement Instructions |
HKEx plans to introduce a “T+2 Finality” model for money settlement of Stock Exchange trades and settlement instructions in CCASS. The objective is to complete both securities and money settlement on the same settlement day to reduce settlement risk. HKEx is preparing a consultation paper to solicit market comments. The paper is tentatively set for release in the second quarter of this year.
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HKEx is seeking informal feedback from certain banks and clearing house Participants on the proposed T+2 Finality model and plans to consult the market by end of the third quarter this year. |
| 10. |
Provision of Custody and Nominee Services for Unlisted Equity Linked Notes (ELNs) |
When HKEx studied over-the-counter market, or OTC, clearing late last year, some market participants indicated there may be demand if HKEx provided custody and nominee services for unlisted ELNs with Hong Kong-listed securities as underlying assets. HKEx is now exploring the idea in more detail with ELN issuers.
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HKEx has had discussions with a number of major ELN issuers but their interest in using HKEx services is generally not high at the moment. HKEx will continue to explore opportunities for safekeeping other unlisted securities.
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| 11. |
Admission of share registrars as CCASS Participants |
HKEx is studying the feasibility of admitting share registrars as CCASS Participants to enhance market efficiency and reduce the number of physical certificates printed for new issues. HKEx is now working with the Federation of Share Registrars (FSR) to explore a feasible working model. |
The SFC has initiated discussions with HKEx and the FSR on developing an operational model for a scripless securities market and aims to consult the market in the fourth quarter this year. The admission of share registrars as CCASS Participants will only be considered in the context of a scripless market.
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| 12. |
Automation of stamp duty reporting and payment |
Not included in this issue. |
HKEx aims to introduce electronic stamp duty reporting and payment in the first half of next year, subject to market readiness and rule amendments. |