Since 2020, the Stock Exchange of Hong Kong Limited (the “Exchange”) has introduced the paperless listing and subscription regime, the online display of documents and reduction of the types of documents on display, the online-only listing rule book and the use of listing e-forms. These various paperless initiatives have improved efficiency and lowered costs for listed issuers. Following the success of these initiatives, the Exchange now proposes changes to other documentary requirements to further simplify the administrative procedures and reduce the use of paper.
Proposal 1: To reduce the number of documents required to be submitted to the Exchange and to mandate submission by electronic means
- to remove submission documents that simply reiterate parties’ obligations already set out in the Rules Governing the Listing of Securities on the Exchange (the “Listing Rules”) or guidance materials issued by the Exchange from time to time, overlap with other submission or disclosure requirements or have become unnecessary for other reasons;
- to codify obligations contained in various undertakings (e.g. DU Form), listing agreements and other standalone confirmations or declarations into the Listing Rules and to remove documents that become duplicative as a result; and to codify an issuer’s obligations to obtain necessary authorisation and consents for its actions into the Listing Rules and to no longer require submission of the underlying authorisation documents;
- to consolidate certain requirements into existing forms; and
- to remove the signature and certification requirements if they only: (a) evidence the sponsors’ approval of the contents; or (b) certify that the submissions are true copies of their originals.
Proposal 2: To mandate electronic dissemination of corporate communications to securities holders by listed issuers after listing
- to mandate that listed issuers must disseminate corporate communications to their securities holders electronically to the extent permitted by the laws and regulations that are applicable to them and their constitutional documents; and
- to enable listed issuers to choose their own consent mechanism for disseminating corporate communications electronically to the extent that the chosen mechanism is permissible under the laws and regulations applicable to them and their constitutional documents.
Proposal 3: To restructure the appendices to the Listing Rules
To restructure the current appendices to the Listing Rules by:
- moving fee-related appendices and certain forms to new sections on the HKEX’s website while specifying in that new location that they still form part of the Listing Rules;
- repealing appendices that are administrative in nature (e.g. “Headline Categories”) and separately displaying their contents on our website outside the Listing Rules section;
- deleting the appendices that have already been repealed or are unnecessary to be set out in the Listing Rules; and
- reorganising the remaining appendices by theme.
For further details, please refer to the Consultation Paper published by the Exchange on http://www.hkex.com.hk. We will keep an eye on when there is Conclusion Paper published by the Exchange.
Contact us to find out more information about the proposed expansion of paperless listing regime.