Keywords: equity capital market, listing applications, disclosure requirements, listing suitability

This quarterly update (January to March 2014) highlights recent developments in Hong Kong capital markets practices:

EQUITY CAPITAL MARKET

TOPICAL ISSUE

  • Return of listing applications — reasons

PROCEDURES AND WAIVERS

  • Documentation and administrative matters — listing applicants — updated guidance

DISCLOSURE REQUIREMENTS AND GUIDANCE

  • Initial 3-day check — material deficiencies — return of Application Proof
  • Application Proof and PHIP — publication on HKEx's website — updated guidelines on recommended redactions
  • Simplification Series — the "Industry Overview" section in listing documents
  • Simplification Series — the "Applicable Laws and Regulations" section in listing documents
  • Simplification series — the "Summary and Highlights" section in listing documents
  • Disclosure in listing documents — indebtedness, liquidity, financial resources and capital structure — sponsor's confirmation on working capital sufficiency statement
  • Disclosure in prospectus — material adverse changes in financial, operational and/ or trading position after the trading record period
  • Disclosure in listing documents — "Directors, Supervisors and Senior Management" section
  • Guidance — accounting and disclosure requirements for acquisitions of subsidiaries and businesses
  • Application Proof — requirement for disclosure of financial information for the trading record period
  • HKEx's suggestion — internal controls on hedging activities

LISTING SUITABILITY AND OTHER LISTING DECISIONS

  • Guidance — gambling activities — whether it is suitable for listing

DEBT CAPITAL MARKET

  • Consent fees — debt restructurings

Click here to get the full issue of the Capital Markets Quarterly Update (January to March 2014).

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This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein. Please also read the JSM legal publications Disclaimer.