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The Securities and Futures Commission (SFC) today published the latest issue of its Corporate Regulation Newsletter reminding listed companies to disclose inside information in an accurate, clear and balanced manner and to ensure equal, timely and effective access by the public (Note 1).
The newsletter is part of the SFC’s initiative to enhance the quality of disclosures by listed companies and to improve corporate behaviour in general.
The latest edition focuses on potential problems that may arise when disclosing information through alternative means, including social media and corporate websites. In particular, a lack of care taken when posting information on a listed company’s own website may result in premature publication of information or share-price volatility.
To stress the importance of transparency, the newsletter highlights the extraordinarily high valuations of some loss-making companies, which may be associated with problems linked to disclosure. It also explains different regulatory outcomes which may arise in the event of suspensions and resumptions for companies listed in multiple jurisdictions, including Hong Kong.
The Corporate Regulation Newsletter is available on the SFC website. Members of the public may subscribe by filling out the form available under the “Subscribe” link. Comments and suggestions can be sent to CRnews@sfc.hk.
Note:
- Under the current statutory regime on disclosure of inside information, which came into effect on 1 January
