Exchange will tighten its grip on highly dilutive capital raising structures

In September 2017, Hong Kong Exchanges and Clearing Limited published the Consultation Paper on Capital Raisings by Listed Issuers, revealing the long-anticipated tightening of regulations on highly dilutive capital raising structures in regard to which corporate governance advocates have been flagging concerns. See our alert for a summary of the key issues in the consultation paper.

The Exchange published the conclusions to that consultation on 4 May 2018. The Exchange said its proposals received support from a majority of the respondents and as a result, it has decided to proceed as proposed, with some minor changes to the draft rules in response to market comments.

In this update, we will note the final rules to be adopted, notable issues and, to the extent the final rules deviate from the draft rules, the differences.

View the full update here.