ASrIA - Press releases & notable news

Directors' blackout period in Hong Kong extended to 60 days for annual results
(update as of 16th February)

(ASrIA had previously written a brief background to this item, click here for details)

Feb. 16 (Association for Sustainable and Responsible Investment in Asia) - The Listing Committee of the Hong Kong Stock Exchange (HKSE) met last week to discuss changes to the black out period imposed on directors prior to the publication of financial results.

Following the opinions voiced from a variety of stakeholder groups, the Listing Committee recommended the blackout period for full year financial results be extended from the current one month to 60 days, with the blackout period for interim results to remain essentially unchanged at 30 days. An additional requirement for issuers is that they give notice of the "imminent commencement" of blackout periods to the Listing Division. The new modified rule is due to be effective from 1st April 2009, however is still subject to approval from the board of the Securities and Futures Commission (SFC).

ASrIA had supported a full “black out period” from the end of the listed issuer's financial period to the date that it publishes the relevant financial results because, in our view, it would:

Align Hong Kong with the model codes of other countries, such as the United Kingdom.
Avoid giving the 'appearance of insider trading' from directors who trade after the period end, but prior to the blackout.
Encourage listed issuers to publish their financial results earlier.

ASrIA's viewpoint received solid support from members and friends with over 160 downloads of a letter in support of the blackout extension, based on over 200 downloads of our background analysis.

Although the extension to 60 days is not the full desired outcome, we believe it is a step in the right direction and by no means an end to the debate. Encouragingly, both the Listing Committee and the SFC revisited the issue of a more "regular flow of timely information" for Hong Kong listed companies. A consultation on the issue of quarterly reporting and its alternatives in Hong Kong will be undertaken by the HKSE soon.

To read the press release from the Listing Committee, please click on the below link:
http://www.hkex.com.hk/news/hkexnews/090212news.htm


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News Index Search for news: Advanced Search	Directors' blackout period in Hong Kong extended to 60 days for annual results (update as of 16th February) (ASrIA had previously written a brief background to this item, click here for details) Feb. 16 (Association for Sustainable and Responsible Investment in Asia) - The Listing Committee of the Hong Kong Stock Exchange (HKSE) met last week to discuss changes to the black out period imposed on directors prior to the publication of financial results. Following the opinions voiced from a variety of stakeholder groups, the Listing Committee recommended the blackout period for full year financial results be extended from the current one month to 60 days, with the blackout period for interim results to remain essentially unchanged at 30 days. An additional requirement for issuers is that they give notice of the "imminent commencement" of blackout periods to the Listing Division. The new modified rule is due to be effective from 1st April 2009, however is still subject to approval from the board of the Securities and Futures Commission (SFC). ASrIA had supported a full “black out period” from the end of the listed issuer's financial period to the date that it publishes the relevant financial results because, in our view, it would: Align Hong Kong with the model codes of other countries, such as the United Kingdom. Avoid giving the 'appearance of insider trading' from directors who trade after the period end, but prior to the blackout. Encourage listed issuers to publish their financial results earlier. ASrIA's viewpoint received solid support from members and friends with over 160 downloads of a letter in support of the blackout extension, based on over 200 downloads of our background analysis. Although the extension to 60 days is not the full desired outcome, we believe it is a step in the right direction and by no means an end to the debate. Encouragingly, both the Listing Committee and the SFC revisited the issue of a more "regular flow of timely information" for Hong Kong listed companies. A consultation on the issue of quarterly reporting and its alternatives in Hong Kong will be undertaken by the HKSE soon. To read the press release from the Listing Committee, please click on the below link: http://www.hkex.com.hk/news/hkexnews/090212news.htm