This issue of the Hong Kong Capital Markets Update provides a snapshot of the latest regulatory reporting and compliance matters affecting the Hong Kong Capital markets.
In February 2015, The Stock Exchange of Hong Kong Limited (“the Exchange”) published Consultation conclusions on review of Listing Rules on disclosure of financial Information with reference to the new Companies Ordinance and Hong Kong Financial Reporting Standards and proposed minor/housekeeping rule amendments. The amendments related to financial information disclosure will come into effect for accounting periods ending on or after 31 December 2015, and the other amendments took effect on 1 April 2015.
The People’s Republic of China Ministry of Commerce released the Draft Foreign Investment Law (“the Draft Law”) on 19 January 2015. The new law will replace three existing laws related to foreign investment. The Draft Law introduces a more in-substance approach towards determining what constitutes a “foreign investment” and could have profound impact on new and existing Variable Interests Entities structures.
In March 2015, the Exchange published a report on the findings and recommendations for improvement from its review of certain issuers’ annual reports for the financial years ended between December 2013 and November 2014 in respect of compliance with the Listing Rules and corporate conduct. The aim of the report is to improve transparency and promote a fair, orderly and informed market.