Hong Kong

Guidelines for Issuers with Negative or Negligible Net Tangible Assets

Nick Etches, KPMG, Hong Kong. nick.etches@kpmg.com.hk

Hong Kong Exchanges and Clearing Limited (“HKEx”) announced on 3 May 2001 guidelines for considering applications by Main Board issuers with negative or negligible net tangible assets for a deminimis concession and/or a modification of the calculation of the “assets test” and “consideration test” for the purposes of classifying notifiable transactions (other than “connected transactions”).