| According to a Minter Ellison media release this week, the Stock Exchange of Hong Kong’s (HKSE) new listing rules for mineral and petroleum companies are likely to provide an attractive option for mineral and petroleum companies seeking to raise capital in Asia. Minter Ellison partner Fred Kinmonth, who advised the HKSE on the new rules in conjunction with Brisbane-based partner Bruce Cowley, suggested that the HKSE’s strategic location – at the cross-road of investors from Mainland China, Europe, the UK and the US – has always been a key selling point for listing in Hong Kong. What was lacking, however, were rules for listing mineral and petroleum companies that meet international standards.
“The new rules, which take effect on 3 June, ensure that investors are provided with material, relevant and reliable information that meets globally recognised standards,” Kinmonth said. The new rules set out disclosure obligations, standards for reporting resources and reserves and for valuing mineral and petroleum assets, and the qualifications and experience of technical experts. “Eligible companies may now apply for a primary or secondary listing on the HKSE under rules that are clear and comprehensive. Chapter 18 of the HKSE Listing Rules will be readily understood by mineral and petroleum companies and their advisers in particular, because the new rules have been drafted with the rules in Australia and other resource-rich jurisdictions in mind,” Kinmonth added. In recent years, more overseas companies have shown interest in listing on the HKSE for various reasons including the HKSE’s strong fund raising capability, and Hong Kong’s financial expertise, strategic location and common law regulatory infrastructure. The HKSE has also expanded its approved list of acceptable jurisdictions for listing applicants – which now includes Australia and Canada – and currently ranks 7th in the world in terms of market capitalisation (US$2.3 trillion). Companies have also been attracted to China’s increasing interest in and expertise in mineral and petroleum companies. |
