- All proposals to be adopted with minor modifications following majority support
- Most new requirements will be provided with transitional arrangements to ease compliance
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), published today (Friday) conclusions to its consultation on Proposals to Further Expand the Paperless Listing Regime and other Rule Amendments (Consultation Conclusions).1
The Exchange received 49 non-duplicate2 responses from a broad range of respondents. All the proposals received support from a majority of respondents. The Exchange will adopt all the proposals outlined in the consultation paper with minor modifications as set out in the Consultation Conclusions.
HKEX Head of Listing, Katherine Ng, said: “Sustainability sits at the core of HKEX’s strategic development, and we are committed to promoting and progressing our market infrastructure with sustainable best practices. We welcome the positive feedback on our consultation, and are pleased to be moving forward with the next phase of our paperless listing reforms. Under the new Listing Rule requirements, issuers will be able to flexibly adopt digital communication and payment technologies, enhancing operational and regulatory efficiency, whilst further reducing the impact of listing-related processes on the environment.”
The proposals adopted and the implementation timeline are as follows:
| Proposals adopted |
Implementation date |
Transitional period |
Issuers to provide securities holders with an option to send instructions to issuers electronically
|
On the date when Securities and Futures (Uncertificated Securities Market) Rules come into effect (“USM Effective Date”)3
|
Standardised Requested Communications4: Ending one year after the USM Effective Date
Non-standardised Requested Communications5: Ending five years after the USM Effective Date
|
| Issuers to provide securities holders with an option to receive corporate action proceeds (e.g. dividends) electronically |
Ending one year after the USM Effective Date |
| Issuers to provide securities holders with an option to pay subscription monies for offers to existing securities holders electronically6 |
|
To remove the availability of Mixed Media Offers7 to issuers
|
On the date when the Companies (Exemption of Companies and Prospectuses from Compliance with Provisions) Notice (Cap. 32L) permitting Mixed Media Offers is repealed |
N/A |
Issuers to ensure their constitutional documents enable them to hold hybrid general meetings and provide electronic voting
|
10 February 2025
|
Issuers will have until their next annual general meeting held after 1 July 2025 to implement the proposal |
Minor and housekeeping Rule amendments
|
N/A |
“The reforms and implementation timeline are designed to provide issuers with flexibility, so they can comply in a manner, and at a time, that best suit their individual circumstances. We believe this approach enables the market, as a whole, to enjoy the benefits of the reforms, while limiting the burden on issuers and their agents, such as share registrars,” Ms Ng added.
The Consultation Conclusions and copies of the respondents’ submissions are available to view on the HKEX website.
Notes:
- The consultation paper was published on 16 August 2024. The consultation period ended on 18 October 2024.
- Three responses were identified as duplicate responses and were not counted for the purpose of a quantitative and qualitative analysis of responses.
- Expected to be at the end of 2025.
- Instructions regarding a meeting of securities holders (e.g. proxy-related instructions) and dividend election.
- Instructions that are not Standardised Requested Communications.
- Including open offers, rights issues, preferential offers and bonus issues of securities to existing securities holders.
- A Mixed Media Offer is an offer process whereby an issuer or an offeror of a collective investment scheme (CIS) can distribute paper application forms for public offers of certain securities without a printed prospectus, so long as, among other matters, the prospectus is available on the HKEX website and the website of the issuer / CIS offeror and it makes printed prospectuses publicly available free of charge upon request at specified locations (which do not have to be the same locations as where the printed application forms are distributed).
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.
As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.
HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.
www.hkexgroup.com
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