Hong Kong Exchanges and Clearing Limited (HKEx) published a consultation paper today (Friday) on proposed changes to the requirements for debt securities for professional investors only (currently referred to in the Rules as listing by selective marketing.) 

The proposals include:

• Presenting the Rules in more accessible language.
  
  
• Unifying the definition of professional investor in the Rules with the definition in the Securities and Futures Ordinance.
  
  
• Removing provisions relevant only to retail investors from the eligibility requirements for applicants.
  
  
• Replacing the current detailed disclosure requirements in listing documents with an obligation to include information that is customary for offers of debt securities to professionals.  Existing requirements to include responsibility and disclaimer statements in prescribed forms and a statement limiting distribution of the offering circular to professionals will be retained.
  
  
• Streamlining the application procedures for applicants and the vetting and approval procedures within the Listing Division.
   
  
• Removing provisions relevant only to retail investors from continuing obligations. 

“These changes will bring us more into line with the requirements of other stock exchanges and allow us to offer processing times that are comparable to those exchanges,” said Mark Dickens, HKEx’s Head of Listing.  “None of these proposals will apply to debt offered to retail investors in Hong Kong.”  

The consultation paper can be downloaded from the HKEx website.  Interested parties are encouraged to respond to the consultation paper by submitting the questionnaire.

The deadline for replies to the consultation paper is 18 February 2011.

Ends