In the past few months, the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange (the "Main Board Rules"), which apply to listings on the main board of the Hong Kong Stock Exchange (the "Main Board"), were amended several times. Here is a summary of the more important changes.
Spin-offs
With effect from 16 July 2001, Practice Note 15 of the Main Board Rules was amended. The changes extended the spin-off requirements to an associated company which was previously a subsidiary of the listed parent at any time during the latest completed financial year up to the date of submission of the spin-off proposal.
In introducing the new rules, the Hong Kong Stock Exchange sought to close a regulatory gap which had in the past allowed listed parents to get around the rules by reducing their stakes in subsidiaries shortly before a spin-off, so that the latter became associated companies to which the old regime did not apply. In addition to the existing spin-off requirements
