Exchange announces the Hong Kong treasury shares regime will take effect from 11 June 2024

The Hong Kong Stock Exchange has announced that the treasury shares regime will be adopted as proposed in its consultation paper, subject to modifications taking into account market feedback and specific local law requirements. In essence, the new regime:

• will remove the current Listing Rules requirement to cancel repurchased shares as soon as reasonably practicable, 
• will introduce mechanisms that allow listed issuers to hold repurchased shares in treasury, and 
• will govern the resale of treasury shares or the cancellation of repurchased shares, which will be at the discretion of issuers.

The new regime will take effect on 11 June 2024. 

This bulletin contains a checklist to help guide listed issuers through the points to consider in preparation for the new regime.