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Exchange Seeks Views on Proposed Rule Changes relating to Aircraft Leasing Activities

Regulatory
17 Nov 2017

  • Consultation paper proposes exempting aircraft leasing from the Exchange’s notifiable transaction requirements
  • Deadline for responses is 22 December 2017

 

The Stock Exchange of Hong Kong Limited (the Exchange), a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Friday) published a consultation paper on a proposed Listing Rule exemption for aircraft leasing activities.

The Exchange proposes Rule changes to exempt aircraft leasing activities from the specific disclosure and shareholders’ approval requirements applicable to notifiable transactions.  The proposed exemption applies to acquisitions, disposals and finance leases of aircraft by listed issuers that are actively engaged in aircraft leasing with aircraft operators and whose principal activities are in that area, subject to the fulfilment of certain conditions and alternative disclosure requirements. 

Currently, aircraft leasing activities are transactions subject to the notifiable transaction requirements even though they are carried out in the ordinary and usual course of the business of listed aircraft lessors.  The proposed exemption is targeted to address practical difficulties faced by these issuers in complying with the notifiable transaction requirements having regard to their business models.   It is narrowly focused and would apply only to aircraft lessors that can satisfy the qualification criteria and other exemption conditions.

“The proposed Rule changes seek to ensure an effective regulation of aircraft leasing activities without compromising investor protection” said David Graham, HKEX Chief Regulatory Officer and Head of Listing.  “This is in line with the Government’s initiative in recent years to promote Hong Kong as an aircraft leasing and financing hub.” 

The deadline for responding to the consultation paper is 22 December 2017.

This Consultation Paper on Proposed Exemption for Aircraft Leasing Activities and corresponding Questionnaire can be downloaded from the HKEX website.  Interested parties are encouraged to respond to the consultation paper by completing and submitting the questionnaire.

 

Ends

Updated 19 Dec 2017

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