The Stock Exchange of Hong Kong Limited (the Exchange), a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), on Monday published its Listing Committee Report for 2017, a review of the Listing Committee’s work in upholding market quality during the year and an overview of its policy agenda for 2018 and beyond.

"2017 was a very busy year for the Listing Committee and the Exchange.  We consulted the market on various regulatory issues including those relating to the review of GEM and capital raisings of listed issuers, and will continue to focus on the quality and reputation of the Exchange’s markets,” said Andrew Weir, Chairman of the Listing Committee.

In 2017, the Listing Committee took a more robust approach to delisting issuers with a very low level of operation and long suspended issuers with material accounting or corporate governance irregularities.  A consultation paper on strengthening the Listing Rules in this area was published in September.  A consultation paper on issuers’ capital raisings, also published in September, sought to address concerns about certain share issuance transactions while ensuring that legitimate capital raising activities were not restricted.  The conclusions for both consultations are expected later this year.

The GEM Consultation Paper was published in June to help address concerns on the quality and performance of GEM applicants and listed issuers.  The consultation conclusions were published in December and the new rules implemented on 15 February 2018. 

Meanwhile the Exchange has continued its market education efforts on listing matters by launching four director training webcasts covering a broad range of topics that include the duties of directors, risk management and internal control. 

The Listing Committee and the Exchange are set to engage the market on a variety of issues in 2018. These include the release of a consultation paper on backdoor listings and continuing listing criteria, as well as a review of the quality and performance of newly listed issuers.

“In 2018, the Exchange will also focus its attention on the proposed rules and regulations to enhance Hong Kong’s ability to attract companies from the emerging and innovative sectors with appropriate safeguards,” said David Graham, HKEX Chief Regulatory Officer and Head of Listing.

The Listing Committee, which consists of 27 independent members and HKEX Chief Executive as an ex-officio member, acts both as an independent administrative decision maker and an advisory body for the Exchange.  It oversees the Listing Department, provides policy advice to the Exchange on listing matters, takes decisions of material significance for listing applicants, listed issuers and the individuals concerned, and acts as a review body.

The Listing Committee Report 2017 can be found on the HKEX website.  The website also has information on the role and mode of operation of the Listing Committee.

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