Capital Markets Quarterly Update (January to March 2014)

This quarterly update (January to March 2014) highlights recent developments in Hong Kong capital markets practices:

EQUITY CAPITAL MARKET

TOPICAL ISSUE

• Return of listing applications — reasons

PROCEDURES AND WAIVERS

• Documentation and administrative matters — listing applicants — updated guidance

DISCLOSURE REQUIREMENTS AND GUIDANCE

• Initial 3-day check — material deficiencies — return of Application Proof
• Application Proof and PHIP — publication on HKEx’s website — updated guidelines on recommended redactions
• Simplification Series — the “Industry Overview” section in listing documents
• Simplification Series — the “Applicable Laws and Regulations” section in listing documents
• Simplification series — the “Summary and Highlights” section in listing documents
• Disclosure in listing documents — indebtedness, liquidity, financial resources and capital structure — sponsor’s confirmation on working capital sufficiency statement
• Disclosure in prospectus — material adverse changes in financial, operational and/ or trading position after the trading record period
• Disclosure in listing documents — “Directors, Supervisors and Senior Management” section
• Guidance — accounting and disclosure requirements for acquisitions of subsidiaries and businesses
• Application Proof — requirement for disclosure of financial information for the trading record period
• HKEx’s suggestion — internal controls on hedging activities

LISTING SUITABILITY AND OTHER LISTING DECISIONS

• Guidance — gambling activities — whether it is suitable for listing

DEBT CAPITAL MARKET

• Consent fees — debt restructurings