04/12/2024 | Press release | Distributed by Public on 04/12/2024 03:25
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Friday) published conclusions (Consultation Conclusions) to its consultation paper on Proposed Amendments to Listing Rules Relating to Treasury Shares (Consultation Paper).
The Exchange received 56 non-duplicate 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 in response to market comments as set out in the Consultation Conclusions.
HKEX Head of Listing, Katherine Ng, said: "HKEX is committed to ensuring the competitiveness of its listing framework and supporting the continued development of its vibrant markets. We are very pleasedtosee the strong market support for the introduction ofa new treasury share regime under the Listing Rules. We believe that this initiative will give issuers greater flexibility in managing their capital structure through share buy-backs and resalesof treasury shares, whilst ensuring a fair and orderly market in the trading of issuers' shares and consistent and fair shareholder treatment."
Key changes to the Listing Rules (the Rules) include:
The Exchange will also make housekeeping amendments to the Rules as set out in the Consultation Conclusions.
The Rule amendments will come into effect on 11 June 2024. For overseas issuers that were granted waivers from the Rule requirement to cancel repurchased shares, transitional arrangements will be provided for them to comply with the amended Rules by their second annual general meeting after the effective date.
The Consultation Conclusions and copies of the respondents' submissions are available to view on the HKEX website.
The Exchange also published(i) a new guidance letter on the arrangements for issuers to hold or deposit treasury shares in CCASS; and (ii) frequently asked questions relating to treasury shares.
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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.
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