Exchange Publishes Conclusions on Proposed Amendments to Listing Rules Relating to Treasury Shares

The Stock Exchange of Hong Kong has garnered significant market support for the introduction of a new treasury share regime. This regime, effective from June 11, 2024, grants issuers greater flexibility in managing their capital structure through share buy-backs and resales of treasury shares. The changes aim to maintain a fair and orderly market while mitigating the risks of stock market manipulation and insider dealing. As part of this initiative, the Exchange has released a guidance letter and a set of frequently asked questions (FAQs) to provide comprehensive information and clarification on the procedures and implications of treasury shares for issuers. The amendments to the Listing Rules include removing the requirement to cancel repurchased shares, allowing issuers to hold them in treasury, and aligning the resale of treasury shares with the rules applicable to issuing new shares. Additionally, measures have been introduced to ensure a fair market, such as imposing a 30-day moratorium period on certain transactions involving treasury shares and prohibiting resale in specific circumstances. The Stock Exchange of Hong Kong aims to enhance the competitiveness of its listing framework and support the development of vibrant markets while maintaining consistent and fair treatment for shareholders. Resources: https://www.hkex.com.hk/News/Regulatory-Announcements/2024/240412news?sc_lang=en