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 (the 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 consultation conclusions on amendments to financial disclosure rules

• HKEx consultation conclusions on risk management and internal controls

• The listing decision issued by the HKEx regarding whether a shareholder falling below 30 percent at IPO would be subject to a post-IPO lock-up

• Amendments to HKEx guidance letters relevant to disclosure in prospectuses/listing documents

• Recent enforcement actions and penalties against listed companies and their directors