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Hong Kong Law

May 2016

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Asian Legal Business Awards

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Charltons - Hong Kong Law Newsletter - Issue 334 - 16 May 2016

Bonus Issues of Shares by Hong Kong listed issuer

Price and volume fluctuations during ex-entitlement period

Share subdivision to avoid disorderly trading during ex-entitlement period

Hong Kong Stock Exchange bonus issues of shares

Price fluctuations during ex-entitlement period

Share subdivision versus bonus issue of shares

Guidance letter HKEx-GL88-16

Avoid development of disorderly trading

Reasonable likelihood of disorderly trading for large-scale bonus issues

Size of bonus issues

Timetable for bonus issues
Trading limits
An allotment of new shares
Listed issuers’ responsibility to ensure their bonus issues of shares are conducted in a fair and orderly manner
Increasing the liquidity of listed issuer’s shares in the market
Conversion of Shares
Redeem Shares