On 9 February 2000, the Securities and Futures Commission ("SFC") announced the amended Guidelines for Handling Offering and Issuance of Overseas Securities by Issuers. Major changes include:
More stringent disclosure requirements
Disclosure required in the prospectus if the issuance is to be entirely offered to the public or if part of the issuance is to be made to specific subscribers;
Public announcement required within two days after the signing of the contract of seeking specific subscribers, the total number of units to be subscribed by such specific subscribers, the total price subscribed and the relationship with such specific subscribers;
The SFC may revoke an approval of issuance if the issuer fails to make the issuance in the way as stated in the application form (and the documentation attached thereto) or following the conversion condition in case of overseas convertible bonds and fails to apply with the SFC for a change before the pricing date (singing date);
