HKEx Listing Rule Changes on Disciplinary Powers and Sanctions effective 3 July 2021

Clinton Morrow

Partner, Charltons

On 20 May 2021, the Stock Exchange of Hong Kong Limited (the HKEx) published conclusions to its consultation on review of the Listing Rules relating to disciplinary powers and sanctions1 (the Consultation Conclusions). The HKEx received diverse views, with a majority of respondents agreeing with most of the proposed changes to the HKEx’s disciplinary regime. In the Consultation Conclusions, the HKEx decided to adopt all the proposals outlined in the Consultation Paper on Review of Listing Rules Relating to Disciplinary Powers and Sanctions2 (the Consultation Paper), with modifications to one proposal. The revised Listing Rules will take effect from 3 July 2021. They will increase the range of reputational sanctions the HKEx can impose and enable disciplinary action to be brought against a wider range of individuals, including members of senior management, if they cause or knowingly participate in a breach of the HKEx Listing Rules.

The Consultation Paper was published on 7 August 2020, with the consultation period closing on 9 October 2020. For an overview of the Consultation Paper, please see Charltons’ September 2020 newsletter.3

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