HKEx tightens suspension rule for A, H shares

The stock exchange wants companies to submit announcements and suspension requests before 9am - an hour before the market opens - to resolve the problem of different timings for suspensions affecting shares listed in Hong Kong and the mainland.

Hong Kong Exchanges and Clearing chief executive Paul Chow Man-yiu unveiled the plan yesterday after China Life Insurance suspended trading at different times in the two markets on Monday. The insurer was suspended by the Shanghai Stock Exchange at 9.30am after media claims of listing plans by China Life's parent firm, which were later denied.

In Hong Kong, the company gave a report to the exchange at 9.50am - after the pre-opening session had started at 9.30am.

During the 30-minute pre-trading session, brokers executed trades for investors by auction to work out the opening price.

Forty companies are listed as A and H shares. Under the exchange proposal, once their A shares are suspended from trading, companies would need to inform the HKEx by 9am if they are to be suspended in Hong Kong or intend to announce any corporate news.

If a dual-listed company is suspended in the A-share market and does not contact the Hong Kong exchange officially, the HKEx would let the company trade but would issue a notice about the A-share suspension and indicate that the exchange had not yet been able to reach the company's officials.