Hong Kong Exchanges and Clearing plans to issue a revised delisting consultation paper next month after its approval yesterday by the listing committee. The paper will not include a share-price threshold for delisting companies, according to committee member Peter Wong Shiu-hoi. Speaking after the committee's weekly meeting, he said the paper would be in the form of open-ended questions inviting the public to give their opinions about the delisting mechanism. 'The open-ended questions will allow the public to freely express their proposals to delist companies,' he said. The HKEx has adopted this approach after HK$10 billion worth of market capitalisation was lost when investors sold more than 200 low-priced stocks on July 26 - a day after HKEx released a paper with 11 proposed delisting criteria. The most controversial proposal was the delisting of companies trading below 50 HK cents for 30 days without consolidating their shares within a year. The revised paper no longer uses a share price as a threshold, to avoid further selling pressure on low-priced stocks. Hong Kong Stockbrokers Association chairman Wilfred Wong Wai-sum said the new approach would be better. He said the last paper had included too many concrete proposals, leading investors to believe they would be implemented soon. 'The new approach in the revised paper will allow the public to well understand it is only a consultation exercise,' Mr Wong said. 'This will help avoid any panic selling.' The exchange must wait for approval from the Securities and Futures Commission before it can release the paper. The consultation period is expected to last for three months. A source said the revised paper would ask only conceptual questions, such as whether there was a need for a delisting system to remove poorly performed stocks. It would ask whether there should be a share-price threshold to determine if a company should be removed, and if so, what it should be, as well as whether there should be an alternative trading platform for delisted companies.