Hong Kong Law

The SFC has reprimanded and fined Interactive Brokers Hong Kong Limited for breaches of the Code of Conduct due to deficiencies in executing market orders using electronic and algorithmic trading systems.

The most significant change proposed is to increase the voting approval threshold for whitewash waivers from a simple majority of independent votes to 75%.

HKEx published listing decisions which dealt with issuer’s sufficiency of level of operations to warrant continued listing, and listed issuer’s ability to meet the new listing requirements after spin-off.

Changes to HKEx’s Main Board and GEM Listing Rules will take effect on 15 February 2018. The changes will raise listing thresholds and impose more onerous requirements for companies transferring to the Main Board from GEM.

The Hong Kong Stock Exchange published the Conclusions to the New Board Concept Paper (Conclusions) today (Friday 15 December 2017) setting out the steps to be taken to extend the Hong Kong listing regime to allow companies …

Consultation Paper proposes changes on the declaration and undertaking by directors and supervisors and related matters, listed issuers’ declaration and board resolutions relating to issuance of securities

The Exchange proposes to add to CP A.5.5 a requirement to explain why the INED would be capable of devoting sufficient time to the board if he or she is holding a seventh (or more) listed company directorship.

The SEHK has published a Consultation Paper on Capital Raisings by Listed Issuers to address potential abuse in large, deeply discounted fund raisings and certain share consolidations and subdivisions.

SFC-licensed corporations and SFC-registered banking institutions engaged in internet trading are required to implement 20 baseline requirements to enhance cybersecurity resilience and mitigate hacking risks.

The Revenue (Profits Tax Exemption for Offshore Funds) Ordinance provides tax exemptions to offshore funds. The Inland Revenue (Amendment) (No. 2) Ordinance extended it to offshore private equity funds.

Hong Kong’s Financial Secretary has suggested that new economy companies with weighted voting rights structures may be allowed to list on the Stock Exchange, subject to the imposition of appropriate safeguards.

On 4 October 2017, The Honourable Justice Wong in the Court of First Instance granted leave to Television Broadcasts Limited (TVB) and allowed a judicial review of the Takeovers and Mergers Panel ruling regarding a share buy-back which TVB announced in early 2017.