This Hong Kong regulatory update is intended to provide a brief overview of the principal Hong Kong regulatory developments in the preceding three months relevant to companies listed or proposed to be listed on The Stock Exchange of Hong Kong Limited (HKEx) and their advisers, including HKEx announcements and rule changes, Securities and Futures Commission (SFC) decisions and updates, and both HKEx and SFC enforcement-related news. In this update we cover:

--HKEx tightens up use of the general mandate

--HKEx issues revised guidance on the use of VIE structures

--New listing decision issued regarding sufficient operations or assets after a very substantial disposal

--HKEx issues consultation paper on proposed changes to the Environmental, Social and Governance Reporting Guide

--HKEx issues results of review of listed issuers’ financial reports

--New guidance issued on why the HKEx rejected or returned certain listing applications

--HKEx issues new guidance letter on disclosure of financial information in a listing document where the new listing applicant or any of its subsidiaries is listed on another exchange

--Recent enforcement actions and penalties