| 1. |
Electronic Disclosure Project |
Phase 2 commenced on 25 December last year. Since 25 December, a Main Board listed issuer with its own website no longer needs to publish notifications in newspapers. A Main Board issuer without its own website must publish full announcements in newspapers as well as on the HKEx website.
From 25 June 2008 onwards, every issuer must have its own website where the public must be able to access documents free of charge.
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The HKExnews website, a website designated for disseminating issuer news, was introduced on 4 February. The website is at: www.hkexnews.hk.
A revised policy on suspensions following listed issuers' publication of announcements with price sensitive information was implemented on 10 March.
From 25 June 2008 onwards, every issuer must have its own website where the public must be able to access documents free of charge.
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| 2. |
Review of the Growth Enterprise Market (GEM) |
HKEx is studying respondents’ comments. Responses to the consultation paper were posted on the HKEx website in November last year. HKEx aims to launch the revamped GEM in the third quarter this year. |
HKEx has finalised its consultation conclusions report and the associated rule amendments necessary to reposition GEM as a second board. The rule amendments have been submitted to the Securities and Futures Commission (SFC) for approval. A further announcement will be made in due course with the aim of the revamped regime coming into effect in the third quarter.
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| 3. |
Consultation on Periodic Financial Reporting |
HKEx is studying respondents’ comments and aims to publish the consultation conclusions in the second quarter. Responses to the consultation paper were posted on the HKEx website in November last year. |
HKEx is finalising its consultation conclusions and proposed rule amendments and, barring unforeseen circumstances, aims to publish its conclusions report and rule amendments by the end of this quarter.
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| 4. |
Combined Consultation on Proposed Changes to the Listing Rules |
HKEx published a consultation paper on 11 January this year seeking comments from the market on a number of substantive policy issues and minor amendments to the Listing Rules. Comments should be submitted on or before 7 April this year.
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HKEx is studying respondents’ comments to the consultation and will take them into account in finalising the proposed changes to the Listing Rules. |
| 5. |
Possible introduction of depositary receipts |
HKEx aims to announce details of a depositary receipt framework in the third quarter of this year. |
HKEx has conducted a technical consultation with selected market participants and has finalised the rule amendments necessary to introduce a depositary receipts regime. The rule amendments have been submitted to the SFC for approval. A further announcement will be made in due course with the aim of the regime coming into effect early in the third quarter.
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| 6. |
Web Proof Information Pack (WPIP) |
A pilot scheme requiring new listing applicants to post a WPIP on the HKEx or GEM website, as applicable, prior to initial public offerings commenced on 1 January this year and will be reviewed three months from that date. If no major defects are found in the operation of the scheme, the WPIP requirement will be codified by amendments to the Listing Rules.
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HKEx is undertaking a review of the pilot scheme. |
| 7. |
Proposed introduction of a closing auction session in the securities market
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Introduction of the closing auction session is scheduled for 26 May this year, subject to market readiness and completion of testing and market rehearsals. |
System preparation has been completed and end-to-end testing is in progress. Market rehearsals are scheduled to be held in early May. |
| 8. |
Five-digit stock codes |
Introduction of five-digit stock codes is scheduled for 7 April this year to cater for an increase in new equity and structured product listings. |
Five-digit stock codes were introduced on 7 April after successful completion of market rehearsals and Exchange Participants’ confirmation of market readiness.
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| 9. |
CCASS Shareholding Disclosure Service |
Not included in this issue. |
The new service, which is designed to help improve transparency under the current market structure by giving the public online access to the shareholding information of CCASS, the Central Clearing and Settlement System for the securities market, is scheduled to be rolled out on 28 April.
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| 10. |
Exploration of new financial products / services and review of existing products / service |
The Stock Exchange’s structured products regime was enhanced in December last year to facilitate the listing of a wider range of Market Access Products and further encourage financial innovation. |
Nine Market Access Products in the form of zero-strike warrants with different underlying assets, including overseas stock indices, gold and other commodities, have been listed. |
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The Board has reviewed the Consultants’ reports on their studies of the feasibility of trading commodities derivatives and emissions-related products in Hong Kong and the consultants’ recommendations. HKEx will seek to develop its existing businesses further with emissions-and gold-related products such as initial public offerings, Exchange Traded Funds and structured products, and it will explore new emissions-and gold-related business opportunities including carbon trading in Hong Kong and the reintroduction of gold futures. |
Gold-related products
HKEx is working with product issuers and fund managers to facilitate the listing of gold and other commodities-related structured products and Exchange Traded Funds.
Gold futures
HKEx is looking into resuming trading of the cash-settled gold futures contract and is in discussion with SFC executives on the proposed rules and regulations in relation to gold futures. The earliest possible rollout date would be the third quarter of this year, subject to SFC approval and market readiness.
An HKEx-Chinese Gold & Silver Exchange Society (CGSE) working group is examining the possibility of allowing CGSE members who obtain a relevant trading licence from the SFC to trade in HKEx’s proposed gold futures market.
Emissions-related products
HKEx has commenced discussions with external parties regarding the potential for emission trading in Hong Kong and is continuing to assess the likely demand for such trading.
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HKEx plans to introduce Mini H-shares Index futures on 31 March this year, subject to SFC approval and market readiness. |
The SFC approved the proposed amendments to the Futures Exchange’s rules and regulations. Mini H-shares Index futures were launched on 31 March.
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| 11. |
AMS/3 and MDF capacity and technology upgrade |
HKEx aims to implement the upgrade before the end of January. |
AMS/3 and MDF capacity and technology were successfully upgraded on 28 January. AMS/3 and MDF are now capable of supporting up to 5 million trades per day at their optimal performance levels, up from 1.5 million before the upgrade.
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| 12. |
CCASS/3 capacity and technology upgrade |
HKEx plans to upgrade CCASS/ 3 in the first quarter of this year to support 5 million trades per day. |
HKEx successfully completed the upgrade for the data storage and LAN(Local Area Network) infrastructure of CCASS/3 on 25 March for alignment with the AMS/3 capacity and technology upgrade completed in January. CCASS/3 is now able to support 5 million trades per day.
The technology upgrade of the CCASS/3 middle-tier system is planned for August to complete the exercise.
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| 13. |
Derivatives market system upgrades |
HKEx aims to implement the upgrade in the first quarter of this year, subject to market readiness. |
HKEx upgraded its HKATS and DCASS systems to Release 19.1 on 3 March. The upgrade allows HKEx to leverage the new functional and technical features of the new release for the further development of the derivatives market and enables HKEx to align HKATS and DCASS with the NASDAQ OMX support roadmap to secure quality support from the vendor, thereby safeguarding the reliability and stability of these mission critical applications at HKEx.
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| 14. |
Review of Vendor Licensing Procedure and Requirements |
Not included in this issue. |
HKEx has recently reviewed the requirements for real-time information vendors and decided to strengthen them in three aspects: (i) financial requirements, (ii) technical requirements; and (iii) market transparency in respect of services available to end users.
The revised requirements and licence application procedures were published at the end of March and became effective for new applications immediately. They are being put into effect in phases between April and September for existing vendors.
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