This issue of the Hong Kong Capital Markets Update provides a snapshot of the latest regulatory and corporate governance developments.
In December 2014, The Stock Exchange of Hong Kong Limited (“the Exchange”) published amendments to the Corporate Governance Code and Corporate Governance Report contained in Appendix 14 of the Main Board Listing Rules in their consultation conclusions on risk management and internal controls. Listed issuers will be required to implement the Code amendments for accounting periods beginning on or after 1 January 2016. The Exchange also published new guidance on shares lock-up of controlling shareholders. It also updated its guidance on the disclosure of directors’ remuneration in the accountants’ report and the accounting and disclosure requirements for acquisitions of subsidiaries or businesses during or after the track record period. Other recent developments include the concept paper on Weighted Voting Rights and the consultation paper on review of listing rules on disclosure of financial information with reference to the new Companies Ordinance and Hong Kong Financial Reporting Standards. The Exchange also published a set of frequently asked questions in relation to listed issuers’ continued obligations after the implementation of Shanghai-Hong Kong Stock Connect.