In our previous news article dated 25 November 2021, we reported that the new Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (“New Code Provisions“) will come into effect on 5 August 2022, following Consultation Conclusion by the Securities and Futures Commission on (i) the Proposed Code of Conduct on Bookbuilding and Placing Activities in Equity Capital Market and Debt Capital Market Transactions and (ii) the “Sponsor Coupling” Proposal.
On 22 April 2022, The Stock Exchange of Hong Kong Limited published an information paper (“Information Paper“) outlining the consequential amendments (“Rule Amendments“) to the Hong Kong Main Board and GEM Listing Rules which will complement the New Code Provisions. The Rule Amendments will reflect the “sponsor coupling” requirement (for Main Board IPOs only) and certain other requirements for issuers and parties involved in specified activities with a view to facilitating the discharge of obligations under the New Code Provisions by intermediaries.
The Rule Amendments will apply to new applicants and listed issuers submitting (or re-filing) their listing applications for IPOs or other specified types of placings on or after 5 August 2022. No specific amendments will be made to the Listing Rules relating to the placing of debt securities. Intermediaries should abide by the New Code Provisions for the standards of conduct expected of them in debt capital market transactions where applicable.
The full text of the Information Paper is available here.