Note to subscribers for the amendments to the rules governing the listing of securities on the Growth Enterprise Market (the "GEM Listing Rules")
Update No. 24
Various amendments to the GEM Listing Rules
We enclose reprinted pages of the GEM Listing Rules. The reprinted pages incorporate:
- an amendment to implement an extension, to 2:00 p.m. , of the lunchtime publication window for announcements;
- an amendment to allow the publication of any type of announcements during the lunchtime publication window; and
- amendments to provide for the new arrangements for distribution of brokerage on initial public offerings (IPOs) through Autopay and to include expressly the brokerage payment arrangements for eIPO applications to reflect the current market practice.
We also enclose the filing instructions.
Publication of announcements
On 10 March 2008 the current restrictions on the publication of announcements outside of trading hours will be relaxed.
A GEM issuer is currently able to publish announcements, including an announcement containing price sensitive information, between 6:00 a.m. and 9:00 a.m. on a trading day, without suspension. This policy will continue. Also, a GEM issuer will continue to be able to publish any announcement after 4:15 p.m. on a trading day.
Currently, only preliminary results announcements, overseas regulatory news, suspension announcements and “standard” and “super” announcements can be published via the GEM website during lunchtime. From 10 March 2008 GEM issuers will be allowed to publish any type of announcement during lunchtime including announcements containing information that may have a material effect on market activity in and the price of the issuer’s listed securities.
Currently the lunchtime window for the publication of announcements ends at 1:30 p.m.. From 10 March 2008 this window will be extended by half an hour to 2:00 p.m..
Under the new arrangements for distribution of brokerage on IPOs, brokerage paid by investors is passed on by the issuer directly through Autopay into the bank account of the relevant Exchange Participant. This represents an improvement on the previous practice of distributing brokerage by physical cheques and is conducive to the timely and orderly administration of the IPO process.
The GEM Listing Rules provide for payment of the IPO brokerage to an Exchange Participant or to the Exchange depending on whether or not the successful application form bears the chop of an Exchange Participant. An eIPO does not involve physical application and therefore chopping is not possible. In practice, issuers through registrars still pay the brokerage to an Exchange Participant for an eIPO application which bears the broker number of the Exchange Participant and to the Exchange where the application does not bear a broker number.
The amendments to paragraph 6 of appendix 9 to the GEM Listing Rules provide for the new arrangements for distribution of brokerage on IPOs through Autopay and expressly include the brokerage payment arrangements for eIPO applications to reflect the current market practice.
Coming into effect
The amendments in relation to the publication of announcements will become effective on 10 March 2008.
The amendments in relation to IPO brokerage became effective on 9 July 2007.
Please click HERE to see the amendments relating to publication of announcements.
Please click HERE to see the amendments relating to IPO brokerage.
For and on behalf of
The Stock Exchange of Hong Kong Limited
Head of Listing