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Legal Update

HKEx’s Consultations on Proposals relating to Self-construction of Assets and Acceleration of Rights Issue and Open Offers

6 August 2009
Mayer Brown JSM Legal Update

Hong Kong Exchanges and Clearing Limited has recently published its: (i) Consultation Conclusion on the Proposal under Issue 15 (Self-construction of Assets) of the 2008 Combined Consultation Paper (the "Consultation Conclusion"); and (ii) Consultation Paper on Proposals to Accelerate Rights Issue and Open Offers (the "Consultation Paper").

(i) The Consultation Conclusion

  • The proposal to exclude as a notifiable transaction any self-construction of assets by a listed issuer for its own use in the ordinary and usual course of business will be adopted.
  • The proposed amendments to the Hong Kong Listing Rules will be revised to the effect that the aggregation requirements will not normally be applied when a listed issuer enters into a series of transactions to construct, develop or refurbish an asset for its own use in its ordinary and usual course of business if the sole basis for aggregation is because the series of transactions forms part of one larger asset.

Amendments to the Hong Kong Listing Rules will become effective on 1 September 2009.

(ii) The Consultation Paper

To accelerate rights issues and open offers, it is proposed that, amongst other housekeeping amendments, the notice period for book closure for rights issues and open offers be shortened from fourteen calendars days to five business days with at least two uninterrupted trading days.

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The relevant HKEx News Releases contain information and other related materials, including hyperlinks to (i) the Consultation Conclusion; and (ii) the Consultation Paper: (http://www.hkex.com.hk/news/hkexnews/0907312news.htm) and (http://www.hkex.com.hk/news/hkexnews/090731news.htm).

For inquiries related to this Client Alert, please contact:

Patrick Wong ( )

Derek Tsang ( )

Jacqueline Chiu ( )

Jeckle Chiu ( )

Learn more about our Hong Kong office and Corporate Finance practice.

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