SFC issues guidance in light of new Mainland rules for overseas listings

Updates on Guidance

Guidance of the upcoming Mainland regulations for overseas listing, effective from 31 March 2023, has been released by the Securities and Futures Commission (SFC). There are updates on the Frequently Asked Question (FAQ) on the “Disclosure of interests in PRC issuers” under Part XV of the Securities and Futures Ordinance, and Takeovers Executive (Note 2) has also given Practice Note 25 to assist market practitioners in applying the Codes on Takeovers and Mergers and Share Buy-backs under the new regulatory requirements.

Glance of the Rules

Despite the repeal of the Mandatory Provisions, H shares and domestic shares are traded separately, and cannot be transferred between exchanges. The calculation of interests in H shares should remain separate from the amount of issued domestic shares. The reporting of H shares and domestic shares are done as current practice.

resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR20

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