Stock Exchange Of Hong Kong Publishes Guidance On Its IPO Process

The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), today publishes guidance materials to enhance the transparency of its initial public offering (IPO) application process.

These materials are part of an ongoing effort to streamline the listing application process, an effort kick-started by the publication in June this year of the Consultation Paper on Proposed Changes to Filing and Checklist Requirements for Listing of Equity Securities.

Discussions with market participants leading to the public consultation revealed a number of them wished to see guidance over a broad range of subjects. In response, the Exchange has compiled these guidance materials.

"We will continue to listen to market participants and consider streamlining measures that are in line with the principle of market quality," said HKEx's Head of Listing, Mark Dickens.

The guidance materials are:

	Guidance letter GL06-09: Exchange practice on accepting early filings of IPO applic at ions at different times of the year.

	Guidance letter GL07-09: documentary requirements on (a) re-filing of a listing application within and after three months of the lapse of the original applic at ion; and/or (b) where there is a change of sponsor(s).

	Guidance letter GL08-09: use of cautionary language when presenting different types of quoted st at istics and d at a in prospectuses.

	Guidance letters GL09-09 to GL11-09: common waiver conditions rel at ing to requirements on:

	-	Sufficient management presence in Hong Kong ;

	-	Publication of first annual report and first annual results; and

	-	Disclosure of pre-IPO share option scheme(s).

	Listing decision series 68: case report on a waiver of the post-IPO fund raising prohibition in the case of an issuer seeking a dual primary listing.

	Listing decision series 69: case report on how an issuer should demonstr at e financial independence and under wh at circumstances shareholders' guarantees are allowed to continue after listing.

	Listing decision series 70: case report on the Exchange's acceptance of Singapore accounting standards for prepar at ion of an accountants' report and other financial st at ements and rel at ed matters.

	Online routine comments: at present the Exchange includes a number of routine comments in its first comment letters to sponsors. Going forward, it will post these routine comments on the HKEx website and the e-Submission System to enable applicants and sponsors to prepare their response s more efficiently (see details below).

	-	Routine comments for Main Board equity issuers

	-	Routine comments for Collective Investment Scheme issuers

	-	Routine comments for issuers seeking to transfer listing from Growth Enterprise Market ( GEM ) to Main Board

	-	Routine comments for GEM issuers

The Exchange plans to publish guidance m at erials on subjects of common interest regularly.