The Stock Exchange of Hong Kong Limited (The Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Friday) confirms that following an internal review, it was found that the annual listing fees for a number of equity issuers had been inaccurately calculated, resulting in discrepancies in fees paid.
A detailed analysis was undertaken by an independent external consultant engaged by the Exchange, covering an investigation period of eight years. The review concluded that approximately 350 issuers were affected, with some issuers having underpaid and some issuers having overpaid their annual listing fees. The total overpaid amount was approximately $6 million, and the total underpaid amount was approximately $3 million.
The analysis also found that approximately 280 (80 per cent) of the affected issuers were only impacted in one year out of the eight year study period. In the vast majority of all cases, the affected issuers had undertaken corporate actions, such as the issuance of new shares, that triggered an application of a different fee rate. Discrepancies arose because a different fee rate was applied from the month of the listing approval, rather than the month that the relevant corporate actions were effective.
The Exchange is contacting all issuers that have been overcharged, to arrange refunds. The Exchange does not plan to claim back any of the undercharged fees.
The issue, which was first identified through an internal review, has since been rectified. The Exchange has now begun a broader analysis of its billing processes with the intention of further modernising its operations. The Exchange will provide further updates as needed.
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