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The Securities and Futures Commission (SFC) and The Stock Exchange of Hong Kong Ltd. (SEHK), a wholly owned subsidiary of Hong Kong Exchanges and Clearing Ltd. (HKEx), today publish a joint consultation paper on the proposal to allow the issue of paper application forms for public offers which have electronic prospectuses available on certain prescribed websites.
The proposal will allow paper application forms for public offers to be handed out at receiving banks without also having to hand out paper prospectuses if electronic prospectuses are available online and other requirements aimed at investor protection are satisfied.
Investors may ask for paper prospectuses at specified branches of receiving banks.
SFC and SEHK have considered several factors when formulating the proposal. These include (i) the increased popularity of the Internet; (ii) the HKEx website as a primary source of issuer information; and (iii) the protection of the environment. The proposal is expected to reduce transaction costs.
Brian Ho, the SFC's Executive Director of Corporate Finance,
said: "Advance in technology and the rapid growth in the use and
penetration of personal computers and the Internet in
"The proposal, if implemented, will generate the
flexibility and practicality that the market requires, and follows in the same
policy direction as advocated in the HKEx's electronic disclosure project. It
should also enhance
Richard Williams, HKEx's Head of Listing, said, "Dedicated efforts have been made in recent years to upgrade the capacity and functions available on the HKEx website to support the electronic disclosure project initiative. The newly launched dedicated issuer website at www.hkexnews.hk is seen as a reliable Internet based document repository where prospectus or other issuer-related information can be viewed and downloaded for free. Riding along on this development and our focus on facilitating greater use of electronic communication, the proposal seeks to relax the requirements with respect to the medium for communicating prospectus information yet preserving the ability of all investors to obtain a physical prospectus if they so desire."
SFC and HKEx invite comments on the proposal by
The Joint Consultation Paper is available on the SFC website at www.sfc.hk and the HKEx website at www.hkex.com.hk.
