Ho
7.
21
"
Mr Keswick also complained that the HKG had shown no
flexibility over extraterritoriality and that non-Hong Kong domiciled companies like Jardines had suffered because they were prevented by the listing requirements of the Hong Kong Stock Exchange from buying back their own shares.
8.
The Hong Kong Government does not accept that any
restrictions that have been placed on the activities of
overseas registered companies via the Stock Exchange listing
rules amount to extraterritoriality.
HKG point out that
what is important is where a listed company has its
principal listing and not whether it is registered in Hong
Kong or overseas. Its view is that in the interests of
investors the same ground rules should apply to all stocks
and shares listed on the Hong Kong Stock Exchange. The current position is that locally registered companies are
whilst overseas magistered prohibited by law from buying their own shares,
, although companions and provented from clown so
rules. Specific safeguards are being formulated which would allow buy-backs and legislation could be in place by the end of this year.
The safeguards will need to apply to both
locally and overseas registered companies and the Stock
Exchange rules will be changed as and when the new buy-back provisions are finalised.
BUSAHL/3
R Marsden