Hong Kong Exchanges and Clearing Limited (HKEx) today (Friday) published its consultation conclusions on the proposals to accelerate rights issues and open offers.

On 31 July this year, HKEx published a "Consultation Paper on Proposals to Accelerate Rights Issues and Open Offers".

HKEx received a total of 37 submissions.  Market feedback indicated general support for the proposals. Having considered the responses, HKEx has modified its original proposals and will amend the minimum notice period for book closure for rights issues to six business days.  Under the modified proposals, the minimum notice period for book closure for open offers will not be reduced.

"The proposals will allow acceleration to the execution period for rights issues. This will help reduce underwriting risk and facilitate fund raisings by listed issuers, and in turn benefit shareholders and investors," said Mark Dickens, HKEx's Head of Listing.

"We note the market comments on open offers and ex-entitlement arrangements. We will review open offers and ex-entitlement arrangements regarding all types of corporate actions next year and, if appropriate, issue a consultation paper," Mr Dickens added.

The Consultation Conclusions can be downloaded from the "Market Consultation - Consultation Conclusions" section of the HKEx website.

Amendments to the Listing Rules can be downloaded from the "Regulatory Framework and Rules - Rules and Guidelines on Listing Matters - Amendments to Main Board Listing Rules" and the "Regulatory Framework and Rules - Rules and Guidelines on Listing Matters – Amendments to GEM Listing Rules" sections of the HKEx website.

The Listing Rule amendments will become effective on 1 February 2010.