Hong Kong Stock Exchange's Consultation on Capital Raisings and Delistings of Listed Companies

The Stock Exchange of Hong Kong Limited has recently released two papers to consult the market on capital raisings and delistings of Hong Kong listed companies. Of particular note is the Exchange’s proposal to impose a limit on the dilution effect of certain capital raising activities.

In this Client Briefing, we highlight the proposed changes which will impact on: (A) capital raisings by listed companies (rights issues, open offers and placings of securities (including convertible securities and warrants)); (B) disclosure of equity fundraisings in annual and interim reports; (C) share subdivision and bonus share issues; and (D) the delisting framework.