- Consultation on proposals to review listing regime for debt issues to professional investors only
- Balancing need to safeguard investors, whilst maintaining effective listing platform for continued bond market development
- Welcome responses through 7 February 2020
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Friday) announced the publication of a consultation paper seeking feedback on its proposals to review and enhance the Exchange’s listing regime for debt issues to professional investors only.
Since 2011, Chapter 37 of the Listing Rules (Chapter 37) has been offering an expedient and streamlined listing process for debt issues to professional investors only.
In light of market developments over the last few years, the Exchange is putting forward a number of proposals for market consultation that seek to balance the need to safeguard investors whilst maintaining an effective and appropriate listing platform for the continued development of the bond market in Hong Kong.
“The Exchange last consulted the market in 2010 on our listing regime for debt issues to professional investors only. Now, we are seeking market views again on the regime to ensure that the market still supports our regulatory approach and to explore measures to enhance market quality,” said David Graham, HKEX’s Head of Listing.
Key proposals:
- Raising the existing issuer’s minimum net assets requirement from $100 million to $1 billion;
- Introducing a minimum issuance size of $100 million;
- Requiring issuers to state explicitly in the listing document the intended investor market in Hong Kong are professional investors only;
- Requiring publication of listing documents on the Exchange’s website on the listing date;
- Disclosure guidance on certain special features in Chapter 37 debt securities and other disclosure-related matters; and
- Introducing other Rules amendments to enhance the regulatory oversight over issuers and guarantors’ in terms of their continuing obligations.
The deadline for responding to the consultation paper is 7 February 2020.
The consultation paper and the questionnaire can be downloaded from the HKEX website. Interested parties are encouraged to respond to the consultation paper by completing and submitting the questionnaire.
Source: HKEx