Connecting the Hong Kong and the Mainland Stock Markets: Inside Information Disclosure Practices

HONG KONG,Sept. 4,2019 -- Those dealing with inside information disclosure practices for companies listed on both the Hong Kong and the Mainland stock exchanges now have a valuable and updated tool with the release of a set of revised guidelines on this topic.

Published by The Hong Kong Institute of Chartered Secretaries (HKICS),the Second Edition of the Guidelines on Practices of Inside Information Disclosure for A+H Companies (Guidelines or Second Edition) is a resource for those in leadership positions,practitioners and regulators alike to tackle the different requirements on inside information disclosure for companies listed both in Hong Kong and theMainland from a practical governance perspective.

Based on the First Edition of the Guidelines,which was published in 2014 and the first of its kind in the Hong Kong and Mainland markets,the Second Edition has undergone a rigorous stakeholder-led upgrade based on five rounds of written consultations,eight revisions and three series of meetings that spans more than 12 months.

Included in the Second Edition are,among other things,a new appendix of summaries of cases decided by the Market Misconduct Tribunal since the inside information disclosure law becoming effective in Hong Kong in 2013,a comparison of the different practices between Hong Kong andthe Mainland on the handling of trading suspensions,updates on the practices and recommendations on inside information disclosure etc.

'Global regulators have given company secretaries and board secretaries ever more corporate-governance-related responsibilities. Their roles have shifted from being primarily engaged in administrative duties to a chief governance officer,' said HKICS President David Fu Yat-hung FCIS FCS(PE).

'This Second Edition of the Guidelines focuses on providing practice updates and case studies relevant to the disclosure of inside information of H-share and A-share companies that help improve effective governance,' said HKICS Vice-President Dr Gao Wei FCIS FCS(PE).

Dynamic environment

HKICS commenced work on revising and updating the First Edition of the Guidelines more than a year ago in response to the changing needs of governance professionals working in Hong Kong andthe Mainland.

The Guidelines cover three broad topics:

Summary of the inside information disclosure law in Hong Kong and comparisons of the key differences and similarities of the inside information disclosure lawand regulations in Hong Kong and theMainland;

Suggestions and recommendations on the internal control systems in inside information disclosure; and

Specific guidelines on inside information disclosures.

The Second Edition has also included a number of relevant cases on inside information disclosure from Hong Kong andthe Mainland with a view to facilitating a better understanding of the inside information disclosure law and regulations governing A+H companies.

'As the integration of the Mainland and Hong Kong capital markets continues to deepen,cross-border co-operation in market supervision becomes closer and listed companies in both jurisdictions will face unprecedented corporate governance and compliance issues. As governance professionals,company secretaries and board secretaries must prepare now to tackle these challenges,' said Mr Fu.

The Guidelines help reinforce the role of HKICS as an advocate and educator in the field of good governance.

The Second Edition of the Guidelines is available HEREfor download.Further details about The Hong Kong Institute of Chartered Secretaries are available at www.hkics.org.hk

About The Hong Kong Institute of Chartered Secretaries

(Incorporated in Hong Kong with limited liability by guarantee)

The Hong Kong Institute of Chartered Secretaries (HKICS) is an independent professional body dedicated to the promotion of its members' role in the formulation and effective implementation of good governance policies as well as the development of the profession of Chartered Secretary and Chartered Governance Professional in Hong Kong and throughout the Mainland.

HKICS was first established in 1949 as an association of Hong Kong members of The Institute of Chartered Secretaries and Administrators (ICSA) of London. It was a branch of ICSA in 1990 before gaining local status in 1994 and has also been ICSA's China/Hong Kong Division since 2005. The ICSA is in the process of changing its name to The Chartered Governance Institute.

HKICS is a founder member of Corporate Secretaries International Association (CSIA) which was established in March 2010 in Geneva,Switzerland. In 2017,CSIA was relocated to Hong Kong in which it operates as a company limited by guarantee. CSIA aims to give a global voice for corporate secretaries and governance professionals.

HKICS has more than 6,000 members and 3,200 students.

For more information,please visit www.hkics.org.hk

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