Part XIVA disclosure obligations: Trading suspensions and post-suspension events cannot be disregarded

The Hong Kong Court of Appeal (CA) has recently clarified the correct approach when determining whether information is likely to materially affect the price of listed securities for the purpose of Part XIVA disclosure requirements, in the context of the listed company having suspended its trading. Any trading suspension and its impact on the price of the securities must be taken into account. As such, the Market Misconduct Tribunal (MMT) was wrong to only consider the impact of the subject information on the pre-suspension price when deciding that the subject information was price-sensitive and that the various former officers of Mayer Holdings Limited (Mayer) were liable for breaching the disclosure requirements.