HKEX publishes latest Listing Committee report

The Stock Exchange of Hong Kong Limited, a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Monday) published its Listing Committee Report 2016, a review of the work of the Listing Committee in upholding market quality last year and an overview of its policy agenda for 2017 and beyond.

2016 was an exceptionally busy year for the Listing Committee and the Exchange. We have placed tremendous focus on the quality and reputation of the Exchange’s markets, covering primarily areas around shell companies, backdoor listing and capital raising of listed issuers” said Stephen Taylor, Chairman of the Listing Committee.

Another substantial matter considered by the Listing Committee in the year was a review of the Growth Enterprise Market (GEM). In 2017, the Exchange will consult the market on regulatory issues relating to GEM and also on backdoor listing, capital raising of listed issuers and delisting.

To ensure any concerns are dealt with effectively and in a timely manner, the Exchange published six guidance letters and 11 listing decisions in addition to two joint statements with the Securities and Futures Commission throughout the year. The Listing Committee and the Exchange will continue to monitor the effectiveness of these guidances on the quality and reputation of the market.

During the year, the Exchange continued its market education efforts on listing matters by conducting 12 seminars for listed issuers’ directors, authorised representatives and company secretaries on its Environmental, Social and Governance Reporting Guide which came into effect in 2016. The Exchange also made plans to roll out training for company directors on a quarterly basis in 2017 covering a broad range of topics, including, but not limited to the duties of directors, risk management and internal control.

The Listing Committee, which consists of 27 independent members and HKEX Chief Executive as an ex-officio member, acts both as an independent administrative decision maker and an advisory body for the Exchange. It oversees the Listing Department, provides policy advice to the Exchange on listing matters, takes decisions of material significance for listing applicants, listed issuers and the individuals concerned, and acts as a review body.

The Listing Committee Report 2016 can be found on the HKEX website.

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