(i) HKEX published its latest Listed Regulation and Enforcement Newsletter, which focuses on enforcement.

Our focus: firstly, common misunderstandings on directors’ duties (P.8) and secondly, guidance for issuers navigating opportunities in digital asset landscape (P. 13).

Its other themes include an overview of the disciplinary regime, enforcement process and timeline, company secretaries (multiple appointments; e.g. role is performed by service providers; P.12).

The cited “common misunderstandings on directors’ duties” include: (i) delegation of duties, (ii) reliance on professional advice, (iii) commercial interests via a vis Rule compliance, (iv) role of INEDs on internal control.

Regarding digital assets, HKEX guidance for issuers include: (i) recommended disclosure, (ii) reminders on other continuing obligations.

Some key areas are set out in Appendix 2.

(ii) HKEX published conclusions on proposed amendments relating to ongoing public float requirement, together with a new Guidance Letter, FAQ. (Press release) 

This is part of HKEX’s continuous efforts to provide issuers with greater flexibility and efficiency in their capital management, whilst ensuring market transparency and continuous orderly trading. It will complement earlier initiatives, e.g. treasury share regime.

At the same time, HKEX is strengthening the reporting obligations on public float levels and adopting targeted, disclosure-based measures in place of trading suspensions. This reflects its commitment to investor protection.

(Effective 1 Jan 2026) The revised framework introduces an alternative on-going public float threshold based on market value for eligible issuers, and enhanced disclosures for all issuers (with additional obligations for issuers relying on market value-based threshold).

(FAQ Q2) HKEX explains that issuers which are still in compliance with the “initial prescribed threshold” (i.e. 25% public float) cannot change to the alternative “market value based” threshold.  It expects an issuer to change to the alternative threshold only if, upon completion of corporate actions/events, its public float falls below the initial prescribed threshold. HKEX’s objective is to provide issuers that have a large market capitalisation with greater flexibility to manage their capital structure, such that a transaction can be conducted even if it results in the public float percentage falling below the initial prescribed threshold.

Key aspects of the revisions are summarised below. (For more details, see Tables on P.2, (on disclosures) P.5 of full HKEX document.). Guidance Letter provides further guidance, including how to calculate “public float market value”, determination of “public” shareholdings, and disclosures.

What you should know

• Alternative ongoing public float threshold representing

  • At least 10% of total issued shares AND

  • Market value: over $1 billion

  • Note: also applies to PRC issuers with no other listed shares

  • Aim: more flexibility to conduct transactions for capital management (e.g. share repurchases)

• A bespoke ongoing public float requirement for A+H issuers

  • H shares listed on HKEX: at least 5% of total issued shares in the class to which H shares belong (i.e. A shares and H shares), OR

  • Market value : over $1 billion

• New regular public float disclosures (P.5)

  • ALL issuers

    • Monthly returns (from the month ending 31 Jan 26): including confirming whether met applicable public float thresholds

    • Annual reports (for financial years commencing on or after 1 Jan 26): e.g. share capital structure and shareholding composition

  • Additional disclosures for issuers relying on market value-based thresholds

• New stock marker system to identify issuers with a significant public float shortfall

  • Abolish immediate suspension as in the past

  • Suspension: if fail to restore public float within 18 months

What you should do

• Review your internal system readiness for new monthly (and in due course, annual report) disclosures

• Assess if your company is eligible for the alternative system

• Report to your board, management, relevant teams for their further capital management planning including readiness of internal systems for additional disclosures

(iii) HKEX published a consultation paper on proposed enhancements to the board lot framework of the HK securities market.

(Background: this is recommended by our government’s Task Force on enhancing stock market liquidity. Board lots define the standard trading unit for each stock. Under the current framework, each issuer determines the board lot unit for its own stock. There are more than 40 different board lot units currently in use).

Firstly, standardisation of board lot units is proposed. Issuers would retain flexibility to select their board lot unit but from a defined set of 8 standardized board lot units (1, 50, 100, 500, 1,000, 2,000, 5,000, and 10,000 share(s))

Secondly, it is proposed to lower the board lot value floor guidance level from $2,000 to $1,000.

Finally, a new board lot value ceiling guidance of $50,000 is proposed, to encourage board lot unit adjustments where the board lot value has increased over time.

Implementation in phases is proposed, beginning with new issuers. Existing issuers will only be required to comply with the updated board lot value floor and new board lot value ceiling guidance. During phase 2, each existing issuer will be required to adopt one of the standardised board lot units within a specified period following its transition to uncertificated shareholding under the USM initiative.

Consultation will close after 12 Mar 26.

(iv) AFRC publishes a consultation paper on the proposed regulatory framework for sustainability assurance in HK, pursuant to our Government’s Roadmap on sustainability disclosures. (Press release, full document)

Consultation will close after 30 Mar 26.

What you should know

Key features

• (Subject to further consultations by HKEX and financial regulators) all entities subject to mandatory reporting using HKFRS Sustainability Disclosure Standards (Mandatory HKSDS Reporting) must obtain independent assurance

• Limited assurance in phases

  • Scope 1 and 2 GHG emission disclosures: from 3^rd financial year of Mandatory HKSDS Reporting

  • All remaining HKSDS-mandatory disclosures: from 5^th financial year of Mandatory HKSDS Reporting

  • (Our example) Assuming LargeCap issuers are required to adopt HKSDS Reporting in 2028, they have to obtain limited assurance for scope 1 and 2 reporting in 2030, for the remaining disclosures in 2032

• Mandatory assurance must be provided by registered sustainability assurance providers

  • Registered local (public interest entity) auditors that meet additional criteria OR

  • Accredited non-CPA firms that meet similar criteria

• Mandatory assurance must be carried out in compliance with HK Standard on Sustainability Assurance 5000

(v) The Privacy Commissioner for Personal Data (PCPD) published investigation findings on a CCTV case, involving a fitness centre chain allegedly collecting images of its members by installing a CCTV camera in the proximity of a male restroom at a new branch. (Press release, “Guidance on the Use of CCTV Surveillance”, “Tips on the Use of CCTV Surveillance” information leaflet)

Some facts: (i) the camera concerned was still in the installation and system-testing phase. No image has been collected, (ii) a wooden door originally planned to be installed at the male restroom was mistakenly installed in another location.

In the press release, PCPD stated that “organisations should avoid using CCTV to collect personal data under unfair circumstances, e.g. CCTV should not be installed to collect images in places where individuals would have a reasonable expectation of privacy (e.g. changing rooms or restrooms)“. In this case, the centre “failed to take into account members’ privacy expectations… and assess the appropriateness of the camera’s location and filming angle when instructing the contractor to install the camera concerned.”

An advisory letter was issued by PCPD to the centre.