SECURITIES officials of Hong Kong and Beijing will meet next week to make arrangements for H shares, due to the expected divergences between the territory's framework and the impending first Chinese corporate law. Hong Kong's Securities and Futures Commission (SFC) executive director Michael Wu yesterday said that officials of the SFC and the China Securities Regulatory Commission would be at the Beijing meeting. He cited the permitting of nominee shareholding in mainland companies as one of the expected divergences. While Hong Kong's current legislation allows a company's shares to be held by nominees, this is not expected to be the case with China's first corporate law. And when Hong Kong-listed companies issuing H shares are mainland-incorporated joint-stock firms, they will be bound by the landmark corporate law, which is to override all former regulations. ''We can not make adjustments on our side for H shares to comply with the first corporate law, as our market will disappear,'' Mr Wu said. ''What we can do is discuss with the Beijing side making amendments to China's existing standard opinion [concerning companies limited by shares] on issues like the permission of nominee shareholding.'' Currently, joint-stock companies in China are governed by a standard opinion on companies limited by shares, which is considered to be the predecessor of the corporate law. Li Yinling, law committee vice-chairman of the National People's Congress, has told the China Daily that the law will come out this month.