The Stock Exchange of Hong Kong Limited (“SEHK”) on 22 September 2017 released a consultation paper on the delisting procedures in Hong Kong. For this consultation, SEHK proposes to amend the Listing Rules to (a) add a separate rule to allow SEHK to delist an issuer after its continuous suspension for a fixed period (proposed to be 12, 18 or 24 months); and (b) specify a delisting process that will apply to all the existing delisting criteria: (i) insufficient public float, (ii) insufficient level of operations, (iii) insufficient assets for the continued operation of the issuer; and (iv) unsuitable for continued listing. SEHK has the discretion to invoke either (a) or (b) above for the delisting of a listed issuer. There are other proposed amendments which seek to ensure consistency in the delisting process under both Main Board and GEM Rules.
By the proposed amendments, the SEHK aims to deal with the prolonged suspension of trading in issuers’ listed securities, which prevents the proper functioning of the market.
The Law Society supports the proposed amendments to the Listing Rules. A copy of the submissions can be found on the Law Society’s website: