Summary of HKEX’s conclusions on its consultation of the Corporate Governance Code and related listing rules
On 27 July 2018, the Hong Kong Stock Exchange (the Exchange) issued Consultation Conclusions on its review of the Corporate Governance Code and Corporate Governance Report (the Code), as well as related amendments to the Rules Governing the Listing of Securities (the Listing Rules). This follows a consultation the Exchange launched on 3 November 2017 (the Consultation).
The Exchange concluded that all the proposals outlined in the Consultation should be adopted, with certain modifications or clarifications. As a result, some amendments were made to the mandatory rules (the Rules), Code Provisions and Recommended Best Practices. The Rules and Code amendments will take effect on 1 January 2019.
This Capital Markets Update provides a summary of the current requirements and the amendments, and discusses the potential impact of the new requirements on Hong Kong listed companies.