Chapter 37 Consultation Conclusions & Disclosure Guidance: What You Need To Know – Background, Key Takeaways and Analysis

On 21 August 2020, The Stock Exchange of Hong Kong Limited (the “Exchange”) published its “Consultation Conclusions on Review of Chapter 37 – Debt Issues to Professional Investors Only and Guidance on Disclosures in Listing Documents and Continuing Obligations under Chapter 37 – Debt Issues to Professional Investors Only” (the “Chapter 37 Consultation Conclusions & Guidance”), which consists of:

  • the Exchange’s consultation conclusions to the proposals set out in its original consultation paper published on 6 December 2019
  • additional guidance published by the Exchange, setting out recommendations on expected standards of disclosure and continuing obligations for debt securities listed under Chapter 37

The key changes are:

  • NAV requirement increased to HK$1bn
  • Disclosure of intended investor market
  • Publication of offering circulars
  • Recommended disclosure guidance

The effective date of the amendments and guidance set out in the Chapter 37 Consultation Conclusions & Guidance is 1 November 2020.
In this alert, we provide the background, key takeaways and our analysis of the proposals which will be implemented under the Chapter 37 Consultation Conclusions & Guidance.

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