- The new Guidance Note on Cooperation clarifies expectations regarding cooperation, including the importance of timely engagement with the Exchange
- The updated Sanctions Statement provides additional detailed guidance on a listed issuer’s internal controls
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Tuesday) published (1) a new Guidance Note on Cooperation, and (2) a revised Sanctions Statement. The Enforcement Policy Statement has been updated to include links to these documents. The new set of guidance materials will provide greater clarity and transparency for listed issuers.
The Guidance Note on Cooperation sets out examples of what may constitute good cooperation between the Exchange and the relevant stakeholders and the possible benefits. The Note also describes what may be construed as uncooperative conduct, such as late production of submissions or evidence, and the possible consequences.
The Sanctions Statement has been revised to provide further clarity on the Exchange’s expectations in respect of a listed issuer’s internal controls, and the extent to which an individual may rely on others in the discharge of duties. The primary sanctions available following the revisions of the Exchange’s disciplinary powers and sanctions in July 2021 have been incorporated in the updated Sanctions Statement to provide more transparency.
HKEX’s Head of Listing, Bonnie Y Chan, said: “Enforcement plays an integral part in achieving the Exchange regulatory objectives. We believe the new set of guidance materials will help encourage good and appropriate culture and conduct, supporting our ongoing efforts to maintain a fair, efficient and orderly market.”
