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Exchange Seeks Views on Review of Listing Regime for Debt Issues to Professional Investors Only

Regulatory
06 Dec 2019

  • Consultation on proposals to review listing regime for debt issues to professional investors only
  • Balancing need to safeguard investors, whilst maintaining effective listing platform for continued bond market development
  • Welcome responses through 7 February 2020

 

The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Friday) announced the publication of a consultation paper seeking feedback on its proposals to review and enhance the Exchange’s listing regime for debt issues to professional investors only.

Since 2011, Chapter 37 of the Listing Rules (Chapter 37) has been offering an expedient and streamlined listing process for debt issues to professional investors only.

In light of market developments over the last few years, the Exchange is putting forward a number of proposals for market consultation that seek to balance the need to safeguard investors whilst maintaining an effective and appropriate listing platform for the continued development of the bond market in Hong Kong.

“The Exchange last consulted the market in 2010 on our listing regime for debt issues to professional investors only.  Now, we are seeking market views again on the regime to ensure that the market still supports our regulatory approach and to explore measures to enhance market quality,” said David Graham, HKEX’s Head of Listing.

Key proposals:

  • Raising the existing issuer’s minimum net assets requirement from $100 million to $1 billion;
  • Introducing a minimum issuance size of $100 million;
  • Requiring issuers to state explicitly in the listing document the intended investor market in Hong Kong are professional investors only;
  • Requiring publication of listing documents on the Exchange’s website on the listing date;
  • Disclosure guidance on certain special features in Chapter 37 debt securities and other disclosure-related matters; and
  • Introducing other Rules amendments to enhance the regulatory oversight over issuers and guarantors’ in terms of their continuing obligations.

The deadline for responding to the consultation paper is 7 February 2020.

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

 

 

About HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets.  HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.

HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited.  This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange, in China, in 2018.

HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.

www.hkexgroup.com

 

 

 

Ends

Updated 06 Dec 2019

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