Hong Kong Exchanges and Clearing has proposed introducing controversial quarterly results reporting in two phases to allow smaller companies more time to prepare for the changes, according to a consultation paper released yesterday.
The paper suggests that firms with a market capitalisation of at least HK$10 billion should report results every three months from September next year, while smaller firms would be given until September 2010 to comply.
According to the exchange, 179 companies fall into the large category and represent about 18 per cent of the main-board listed stocks. The consultation ends in November.
The paper issued yesterday confirmed a report by the South China Morning Post in July that the exchange intended to relaunch its proposal to narrow the reporting period from the current half year.
The exchange in 2002 also tried to halve the reporting period but shelved the plan in the face of opposition from companies, including blue chips such as HSBC Holdings and Sun Hung Kai Properties. They said it would add costs and lead management to chase short-term profits.
The exchange paper said it had decided to broach the idea again to match international trends.