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Following is an English translation of the opening remarks made by the Secretary for Financial Services and the Treasury, Mr Frederick Ma, at a press conference to announce new listing package today (July 24):
The Securities and Futures Commission (SFC), Hong Kong Exchanges and Clearing Limited (HKEx) and I have jointly reviewed the current listing approval mechanism and reached a consensus to introduce a package of measures to improve the present listing structure and procedures.
Our aim is to create a market environment that is conducive to the listing of high quality companies, especially Mainland and Taiwan corporations, in Hong Kong. This will strengthen Hong Kong's position as a premier international financial centre.
Integrated listing structure
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* The Main Board and GEM Listing Committees will be consolidated into a single Committee with broadened participation of market users including issuers, intermediaries and investors. This will provide effective checks and balances that will alleviate concerns of conflict of interests and ensure that listing decisions are fair and consistent, thus safeguarding investors' rights. Placing the Listing Committee within the HKEx structure will be conducive to market development.
* All nominations of Listing Committee members will be vetted and approved by a Nomination Committee formed jointly by the SFC and HKEx. The SFC and HKEx have arrived at a consensus to put forward to the Nomination Committee the nomination of Mr Mavin Cheung Kin-tung for the Chairmanship, and Mr Moses Cheng Mo-chi and Mr Vernon Francis Moore for the Vice-Chairmanship of the Listing Committee under the new framework.
* The new listing structure will be effective from 1 January 2003. We will closely monitor the operation of the new system, and plan to review this arrangement in about two years' time.
Streamlining procedures to increase efficiency and reduce costs
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* HKEx will appoint experienced overseas experts to administer the listing and adjudication process. The senior executives will vet applications upfront. Approval procedures will be streamlined, thus shortening the time for the processing of listing applications. We hope these measures will help reduce the costs of listing and increase the competitiveness of our markets.
Enhancing Corporate Governance and maintaining investors' confidence
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* We are totally committed to corporate governance reform, with a view to enhancing transparency of listed companies and maintaining investors' confidence. To this end,
(a) The SFC will propose legislative amendments to criminalise provision of false and misleading information by listed companies to improve the quality of information disclosure.
(b) Listing applicants and sponsors will be responsible for assuring the quality of listing documents, otherwise applications will run the risk of being rejected or delayed.
(c) HKEx will amend the Listing Rules by the end of this year to implement specific measures to improve corporate governance.
(d) HKEx will shortly conduct a public consultation on a proposed framework for continued listing and delisting arrangements.
The SFC, HKEx and I are confident that this series of measures will enhance the quality of our securities market, strengthen the role of Hong Kong as a premier capital formation centre in the region and an international financial centre. I would like to take this opportunity to thank members of the two Listing Committees for their unfailing support and contribution over the past years.
End/Wednesday, July 24, 2002
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