Exchange Publishes Consultation Paper on Proposed Amendments to Listing Rules Relating to Treasury Shares and Guidance Letter on Issuers’ Automatic Share Buy-back Programs

The SEHK has published a consultation paper seeking market feedback on proposed amendments to introduce a new treasury share regime. The consultation period will end on 27 December 2023. The Exchange has also issued a guidance letter on issuers’ automatic share buy-back programs. These initiatives aim to provide issuers with greater flexibility in managing their capital structure and enhance the competitiveness and appeal of the market. The proposed amendments include removing the requirement to cancel repurchased shares, imposing a moratorium period on resale of treasury shares, and introducing consequential rule amendments. The guidance letter outlines the criteria for granting waivers to issuers for conducting automatic share buy-back programs during the Restricted Period.

Consultation Paper: https://www.hkex.com.hk/-/media/HKEX-Market/News/Market-Consultations/2016-Present/October-2023-Treasury-Shares/Consultation-Paper/cp202310.pdf

Guidance Letter: https://en-rules.hkex.com.hk/rulebook/gl117-23

Resource: https://www.hkex.com.hk/News/Regulatory-Announcements/2023/231027news?sc_lang=en

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