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The Exchange Publishes Consultation Conclusion on Shortening the Deadlines for Half-Year and Annual Reporting by Main Board Issuers

Corporate
Regulatory
18 Jul 2008

THE STOCK EXCHANGE OF HONG KONG LIMITED
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)

The Exchange Publishes Consultation Conclusion on Shortening the Deadlines for Half-Year and Annual Reporting by Main Board Issuers

The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), published today (Friday) its Consultation Conclusion on Shortening the Deadlines for Half-Year and Annual Reporting by Main Board Issuers (Consultation Conclusion). 

On 31 August 2007, the Exchange published a Consultation Paper on Periodic Financial Reporting to invite market comments and views on proposals to:-

1.

Shorten the deadlines for half-year and annual results announcements and reports published by Main Board issuers;

2.

Introduce mandatory quarterly reporting requirements for Main Board issuers; and

3.

Align Growth Enterprise Market, or GEM, quarterly reporting rules with the proposals for Main Board issuers.

This Consultation Conclusion deals with the first proposal only.

The Exchange received a total of 62 submissions. The respondents comprised Main Board issuers, professional and trade associations, regulators, market practitioners and retail investors.  The comments received from the market were diverse. 

Having taken into account the views expressed by the respondents, the Exchange will implement its proposals with certain modifications.  The Consultation Conclusion sets out the amendments to be made to the Main Board Listing Rules for the purpose of implementing the Exchange’s decisions. The rule amendments will:-

Shorten the reporting deadlines for the release of half-year results announcements (from three months to two months) by Main Board issuers; and
Shorten the reporting deadlines for the release of annual results announcements (from four months to three months) by Main Board issuers; but
Retain the existing reporting deadlines for the release of half-year and annual reports (three months and four months respectively) by Main Board issuers.

The new requirements will provide more timely disclosure, and will come into effect for half-year and annual results announcements covering accounting periods ending on or after 30 June 2010 and 31 December 2010 respectively.

Richard Williams, HKEx’s Head of Listing, said, “The accelerated results announcement deadlines are a step in the right direction in improving transparency and will bring the Exchange’s requirements closer to international norms.”

The Consultation Conclusion and copies of submissions to the Consultation Paper can be downloaded from the “Market Consultation – Consultation Conclusions” section of the HKEx website.

Amendments to the Main Board Listing Rules can be downloaded from the “Regulatory Framework and Rules – Rules and Guidelines on Listing Matters – Listing Rules Update for Main Board Listing Rules” section of the HKEx website.

Updated 18 Jul 2008

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