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HK stock exchange drops requirement for China-related risk disclosure


The Hong Kong Stock Exchange (HKEX) has abolished the requirement for companies to disclose China-related business risks in listing applications. This move aligns HKEX with recent disclosure modifications implemented by Beijing. The revisions, intended to “align the requirements” following changes in the Mainland China regulatory framework, included repealing a section that concentrated on risks from China's policies, its business, and the legal environment. However, HKEX affirmed there is no rollback in the level of scrutiny required by listing rules. The decision follows a warning by the China Securities Regulatory Commission for companies to refrain from negative depictions of China's policies in their listing prospectuses. This change coincides with a higher frequency of Chinese companies filing offshore listing proposals with HKEX.

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