Tag Archives: regulation

HK tightens rules on backdoor listings

Hong Kong’s securities regulator and stock exchange have announced changes to how they will combat backdoor listings, a tactic used by companies that might not otherwise qualify to list. The new rules will go into effect on October 1 and target changes in de facto control of listed companies or large-scale issuance of shares that result in such changes. 

The amendments will expand the listings regime’s test for control and de facto control to include both changes in an issuer’s controlling shareholder as well as changes in the single largest shareholder able to exercise effective control. 

The changes to Hong Kong’s listings rules come as HKEX seeks to shore up its reputation in the wake of a listings scandal and ongoing investigation into a top former employee for suspected corruption and misconduct in public office “in relation to the vetting of listing applications” of two listed companies. Read more on SCMP

Shenzhen introduces new policies to stabilize housing rental fees

Shenzhen’s high housing prices have been a major focus recently as the city is well aware of the need to attract and retain “talents”. The government has now released six measures to increase the supply of rental apartments and regulate the leasing market. 

Basically, the government is encouraging landlords and/or leasing companies to join its leasing service platform. It is offering tax incentives to do so, such as VAT rebates. 

Shenzhen is also working on supply, offering more public rentals. These account for 30% of newly-added commercial housing. Moreover, more land to build rental apartments are being assigned to industrial parks. Regulations to restrict the rental fees and combat illegal leasing have also been introduced. 

Read more in Chinese.