Clifford Chance
The Hong Kong Stock Exchange publishes Listing Rule changes to reform the connected transaction regime
3 April 2014
The Stock Exchange of Hong Kong Limited (the Exchange) has published Listing Rule amendments to reform the connected transaction regime. These changes will take effect from 1 July 2014.
Last year the Exchange consulted the market on a series of issuer-friendly proposals which targeted to simplify the connected transaction rules, but a few of them have now been withdrawn primarily because of the concerns raised by the disagreeing respondents. Withdrawn proposals include those originally intended to relax the compliance framework for continuing connected transactions.
On the other hand, the Exchange has slashed a number of the proposals on enhancing regulation so as to strike a balance between the needs to safeguard shareholders' interests and imposing compliance burden on issuers.
