Title: Enhancements of Information Dissemination under the Electronic Disclosure Project
1 Enhancements of Information Dissemination under
the Electronic Disclosure Project
Briefing for Exchange Participants 11 May
2007
2Outline
- Overview of Electronic Disclosure Project
- Current Information Dissemination Arrangement
- Further Information for Exchange Participants
- Preparation by HKEx
- Timetable for Exchange Participants
- Question and Answers
3Electronic Disclosure is the right direction
Overview of Electronic Disclosure Project
- Electronic Disclosure will
- provide fair, timely, accurate, secure and cost
effective access to regulatory information - enhance investors confidence in our market
infrastructure and regulations - align Hong Kong with international norms and
- enhance Hong Kongs competitiveness.
- It will also provide the foundation for
- Dissemination of issuer information during
trading hours - Modified suspension policy to minimise adverse
effect on trading and - Allow the use of electronic templates to collect
enhanced issuer disclosures.
4Brief History of the Electronic Disclosure Project
Overview of Electronic Disclosure Project
5Electronic Disclosure - Market Impact
Overview of Electronic Disclosure Project
- Electronic Disclosure proposals in summary
- Abolish paid advertisements in newspapers
- Mandate electronic submission
- Provide straight-through processing
- Require issuers to establish their own website by
25 June 2008 - Consequential changes to suspension policy.
- Proposals effective from 25 June 2007
- Transitional arrangements
- Until 24 December 2007 issuers to publish a
notification in newspapers - Until 24 June 2008 issuers without their own
website must continue to publish announcements in
newspapers - Communication, education and familiarisation.
6Overview of Electronic Disclosure Project
Detailed New Operation Model
?
Scope of NPA
Shareholder circulars and press releases
Issuers
??
?
?
?
?
?
HKEx website
Investors
(All announce-ments)
eSubmission System (ESS)
ePublication System (EPS)
No
Yes
Vetting?
?
PDF format
Issuer Information Feed (IIS)
Information vendors
?
?
ESS for vetting
?
?
(All announcements)
Market Data Feed (MDF) /
News alerts
News alerts
Clearance
EMSIS
AMS/3
?
?
?
Trading terminals
???
Listing Division
7Overview of Electronic Disclosure Project
Impact on Investors
- Go online for full version of issuer
announcements - Newspapers continue to cover corporate news
- Stay alert by signing up for HKExs free
email/SMS alert service - More timely dissemination of issuer news
- Free online central repository of issuer
documents - Upgraded functionality and capacity of HKEx
website for access to issuer documents - Easier retrieval and searching of issuer archives
with newly introduced headline categories
Investors
8Overview of Electronic Disclosure Project
Preparing Investors
- Enhancements of website functionality for display
and searching of issuer information - Enhancements to ISC email/SMS alert service in
April - Alert Investor programme to raise awareness of
the publication of issuer information on HKEx
website - Communication paper outlining Electronic
Disclosure regime and its implications for
investors and other stakeholders - Public Viewing Room opened to facilitate investor
access to issuer information posted on HKEx
website
9Overview of Electronic Disclosure Project
Impact on Exchange Participants
- AMS/3 will no longer provide full text of issuer
announcements. Brokers have to rely on HKEx
website or information vendors services for
access to issuer announcements - HKEx will introduce a News Alerts Service so that
AMS/3 traders will be alerted whenever a listed
issuer announcement or document is published - Floor traders at the Trading Hall have to bring
their own portable PC for access to Internet, or
use the online facilities available at back-up
trading booths
10Overview of Electronic Disclosure Project
Preparing Exchange Participants
- New issuer news alert service for AMS/3 and
Market Data Feed users from 25 June 2007 - Provision of headline categories for all issuer
information - Briefings and circulars to Exchange Participants
on implications of Electronic Disclosure
11How issuer provides issuer documents?
Current Information Dissemination Arrangement
- To HKEx
- E-Submission System (ESS)
- CD-Rom or computer diskette delivered to HKExs
designated collection box - By fax (only limited types of documents)
- To other parties
- Published on one Chinese and one English local
newspaper in the form of paid advertisements
(Main Board issuers only)
12How to obtain issuer documents?
Current Information Dissemination Arrangement
- HKEx
- HKExs official website (www.hkex.com.hk)
- GEM website (www.hkgem.com)
- AMS/3 trading terminals
- Information vendors terminals
- Others
- Paid advertisements on local newspapers
- Shareholder circulars (for existing shareholders
only)
13Further Information for Exchange Participants
- Limitations of AMS/3 for display of issuer news
- AMS/3 News Alert Messages
- Issuer Information on HKEx website
- Relocation of Trading Information
- .
14Further Information for Exchange Participants
Limitations of AMS/3 for display of issuer news
- Limited coverage Only vetted announcements and
financial results of listed companies are
uploaded to AMS. - No graphics and tables Only ASCII text format is
allowed. - No archive depository All news will be erased
at the end of the trading day. - Incomplete News issued earlier will be pushed
out by new incoming news. - System design AMS/3 screen is not designed for
display of lengthy issuer announcement.
15Further Information for Exchange Participants
AMS/3 News Alert Message
Headline Categories will be used to facilitate
the search of issuer documents
16Further Information for Exchange Participants
Headline category
Free-text title
Issuers own website
Headline Categories will be used to facilitate
the search of issuer documents
Caveats
Inspection of announcement
SAMPLE Notification
17Further Information for Exchange Participants
Issuer Information on HKEx Website Latest
Listed Company News
Quick Access Icon at Homepage
18Further Information for Exchange Participants
Issuer Information on HKEx Website Latest
Listed Company News
Latest Announcements
19Further Information for Exchange Participants
Issuer Information on HKEx Website News Archive
Multiple Search Functions
20Further Information for Exchange Participants
Issuer Information on HKEx Website Information
Search
21Further Information for Exchange Participants
Email / Mobile Alerts for Issuer News
- news alert service available through the
Investment Service Centre (ISC) on the HKEx
website - Facilitate to keep track of latest issuer
disclosures - notify registered users by email and/or mobile
phone text message alert of any announcements or
disclosure - Free of charge
22Further Information for Exchange Participants
News Alert Service Promotion Program
- Placing advertisement in local newspapers and
issuing news release - Forming Informed Investor Network with over 20
Exchange Participants to promote the service - Distributing promotional material ( posters,
handbills and stickers) - 23,000 registered subscribers
- Over 20 organisation joined the Informed Investor
Network
23Further Information for Exchange Participants
Relocation of Trading Information and Information
Table
Effective 2nd May 2007
24Further Information for Exchange Participants
Centralised location for all Trading Information
Effective 2nd May 2007
25Enhancements of Information Dissemination
Centralised location for all Trading Information
Effective 2nd May 2007
26Preparations by HKEx
- Revised Listing Rules and guidance materials
approved. - Revised internal procedures adopted.
- Contingency measures and procedures established.
- Staff redeployed.
- Upgraded security, functionality and capacity of
related IT systems - Development and testing completed
- Familiarisation exercises support system
readiness - Upgraded HKEx websites to improve issuer
information display and archive searching.
27Preparations by HKEx
- Upgraded the Investor Service Centres alert
service which provides personalised notifications
of announcements by SMS or email. - Modified HKExs information products to support
electronic disclosure changes. - Introduced issuer news alert to AMS/3 and Market
Data Feed. - Developed training and familiarisation
initiatives to educate listed issuers and their
agents. - Ready to educate investors and general public
about Electronic Disclosure changes.
28Timetable for Exchange Participants
HKEx will work closely with Exchange
Participants to prepare investors and themselves
for the forthcoming implementation of the
Electronic Disclosure Project
29Thank You
30Disclaimer
- The material contained herein is for reference
and education purpose only and does not
constitute an invitation or offer to acquire,
purchase or subscribe for any securities or
HKExs products. Comments of speakers does not
represent HKExs standpoint. HKEx takes no
responsibility for the contents of this material
or comments of speakers and expressly disclaims
any liability whatsoever for any loss howsoever
arising from or in reliance upon the whole or any
part of the contents of this material or comments
of speakers. Investors should read the listing
document carefully, ensure that they understand
the nature of and risks associated of their
investment, and where necessary consult their
financial advisers as to the suitability of the
investment in light of their particular financial
circumstances and objectives prior to making any
investment decision.