MAINLAND companies listing in Hong Kong have stimulated the stock market.
Between 1992 and 1993, the stock exchange and Securities and Futures Commission (SFC) negotiated with Chinese authorities for the setting up of a framework for H-share listings.
In June last year, the SFC, the stock exchange and the China Securities Regulatory Commission signed a Memorandum of Regulatory Co-operation covering co-operative issues relating to regulating mainland companies.
SFC chairman Robert Nottle said: 'Like all memoranda, its significance is as a public statement of a willingness to co-operate with each other and that public statement is coming into effect. We have quarterly meetings with them with a properly drawn up agenda, as well as a lot of informal contact.' A letter of addendum was drawn up along with a special set of provisions prepared for H-share companies to include in their articles of association.
A new chapter - 19A - was added to the exchange's listing rules to cater to H-share listings.
This required H-share issuers to: Prepare accounts complying with Hong Kong or international standards.
Ensure that all issued H shares were held by the public.
