Hong Kong

Amendments to Practice Note 15 to the Main Board Listing Rules

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

The Stock Exchange of Hong Kong (“SEHK”) announced on 15 July 2001 that Practice Note 15 to the Main Board Listing Rules, which set’s out SEHK’s requirements on proposals submitted by listed issuers to effect a separate listing of assets or businesses wholly or partly within their existing group (“spin-off ”), had been amended. Practice Note 15 has been amended to cover the spin-off of an associated company which was previously a subsidiary of a listed issuer at any time during the latest completed financial year of the listed issuer up to the date of submission of the spin-off proposal. The amendment has been introduced as previously some listed issuers have reduced their interests in subsidiaries so that they become associated companies to avoid the requirements of Practice Note 15.