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From Paper to Paperless Straight-through Electronic Disclosure and Abolition of Paid Announcement Requirement (The Electronic Disclosure Project). Press Conference 23 March 2007. Electronic Disclosure is the right direction.

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From Paper to Paperless

Straight-through Electronic Disclosure and

Abolition of Paid Announcement Requirement

(The Electronic Disclosure Project)

Press Conference

23 March 2007

Electronic disclosure is the right direction
Electronic Disclosure is the right direction

  • Hong Kong’s investor profile has changed whilst our current inefficient and potentially flawed system has not.

  • Electronic Disclosure will:

    • provide fair, timely, accurate, secure and cost effective access to regulatory information

    • enhance investors’ confidence in our market infrastructure and regulations

    • align Hong Kong with international norms

    • enhance Hong Kong’s competitiveness

  • It will also provide the foundation for:

    • Dissemination of issuer information during trading hours

    • Modified suspension policy to minimise adverse effect on trading

    • Allow the use of electronic templates to collect enhanced issuer disclosures

Electronic disclosure market impact
Electronic Disclosure - Market Impact

  • Electronic Disclosure proposals in summary:

    • Abolish paid advertisements in newspapers

    • Mandate electronic submission

    • Provide straight-through processing

    • Require issuers to establish their own website by 25 June 2008

    • Consequential changes to suspension policy

  • Proposals effective from 25 June 2007

  • Transitional arrangements:

    • Until 24 December 2007 issuers to publish a notification in newspapers

    • Until 24 June 2008 issuers without their own website must continue to publish announcements in newspapers

  • Communication, education and familiarisation

Preparations by hkex
Preparations by HKEx

  • Revised Listing Rules and guidance materials approved

  • Revised internal procedures adopted

  • Contingency measures and procedures established

  • Staff redeployed

  • Upgraded security, functionality and capacity of related IT systems:

    • Development and testing completed

    • Familiarisation exercises support system readiness

  • Upgraded HKEx websites to improve issuer information display and archive searching

Preparations by hkex1
Preparations by HKEx

  • Upgraded the Investor Service Centre’s alert service which provides personalised notifications of announcements by SMS or email

  • Modified HKEx’s information products to support electronic disclosure changes

  • Introduced issuer news alert to AMS/3 and Market Data Feed

  • Developed training and familiarisation initiatives to educate listed issuers and their agents

  • Ready to educate investors and general public about Electronic Disclosure changes

Electronic disclosure impact on investors and issuers
Electronic Disclosure –Impact on Investors and Issuers

  • Go online for full version of issuer announcements

  • Newspapers continue to cover corporate news

  • Stay alert by signing up for HKEx’s free email/SMS alert service

  • More timely dissemination of issuer news

  • Free online central repository of issuer documents

  • Upgraded functionality and capacity of HKEx website for access to issuer documents

  • Easier retrieval and searching of issuer archives with newly introduced headline categories

  • Reduction in continuing costs of listing

  • More secure and efficient submission channel with extended service hours

  • Flexibility to use agents for electronic submission

  • Discipline to adjust to new submission requirements (i.e. mandatory e-submission, Chinese/English simultaneous submission, etc)

  • Establish own website within the next 15 months



Preparing investors
Preparing investors

  • Enhancements of website functionality for display and searching of issuer information

  • Enhancements to ISC email/SMS alert service in April

  • Alert Investor programme to raise awareness of the publication of issuer information on HKEx website

  • Communication paper published today outlining Electronic Disclosure regime and its implications for investors and other stakeholders

  • Public Viewing Room opened to facilitate investor access to issuer information posted on HKEx website

Preparing brokers and information vendors
Preparing brokers and information vendors

  • New issuer news alert service for AMS/3 and Market Data Feed users from 25 June 2007

  • Provision of headline categories for all issuer information

  • Enhancements to Issuer Information feed System

  • Briefings for Information Vendors on changes in data content

  • Briefings and circulars to Exchange Participants on implications of Electronic Disclosure

Preparing issuers
Preparing issuers

  • Registration of issuers and agents almost completed

  • Issuer and agent briefing sessions on using ESS completed

  • ESS e-Learning CDs distributed to all listed issuers and others

  • ESS hotline set up in January 2007 to provide technical support

  • Familiarisation sessions for ESS users in progress

  • Readiness confirmations will provide a clear signal issuers are ready

Communication and education
Communication and Education

HKEx will work closely with the industry to help prepare the market for Electronic Disclosure:

  • Advertising and awareness programmes

  • Media workshop on Electronic Disclosure

  • Designated web page on Electronic Disclosure

  • Collaboration with EPs to promote Electronic Disclosure services to their clients

  • Collaboration with industry bodies in primary market to prepare listed issuers for Electronic Disclosure implementation