In the first quarter of 2014, The Stock Exchange of Hong Kong Limited (“the Exchange”) published two consultation conclusions on proposals to amend the connected transaction rules. The amendments, which will take effect on 1 July 2014, include changes to the existing rules on connected transactions and the definitions of “connected person” and “associate”. In addition to the two consultation conclusions, the Exchange also published guidance on the pricing policies for continuing connected transactions and their disclosures as well as two listing decisions related to the applications of the connected transaction rules. These recent developments are included as part of the topical highlights in this issue of the Hong Kong Capital Markets Update.
With the New Companies Ordinance (“New CO”) coming into effect on 3 March 2014, the Exchange has issued guidance, in the form of frequently asked questions (FAQs), on those rules that may be impacted by the new provisions. In addition, the Exchange also published during the first quarter results of its review of listed issuers’ financial reports and the disclosures in the listed issuers’ annual reports. The Exchange’s guidance on the impact of the New CO and the key observations and findings of the Exchange’s reviews of the listed issuers’ financial and annual reports are also highlighted in this issue.