The chairman of the securities regulator hopes Hong Kong-listed companies will disclose more relevant details in their corporate announcements more promptly, so as to match the best international practices.
Carlson Tong Ka-shing, chairman of the Securities and Futures Commission, said listed companies needed to make more of an effort to disclose meaningful price-sensitive information, although they had improved a lot after a new disclosure law took effect on January 1.
"We have seen an 87 per cent year-on-year increase in announcements of corporate inside information in January, which showed the new law has led companies to pay more attention to public disclosure," Tong told the South China Morning Post.
The number of companies providing key corporate information rose to 401 last month from 214 a year earlier.
Under the new law, companies and directors could face fines of up to HK$8 million if key price-sensitive corporate information, such as major acquisition or disposal plans, mergers, acquisitions or substantial changes in profit or loss, is not disclosed in a timely fashion.
The passing of the law, which is designed to put market transparency in Hong Kong on par with international standards, followed more than 10 years of debate. Prior to its introduction, companies that failed to disclose such information would only be reprimanded for breaching listing rules. The fines were brought in to add teeth to the existing regulations.