New trading ban rule postponed
30-12-2008
The Stock Exchange has postponed a plan to extend the trading ban period for directors dealing in their own companies' shares before announing earnings. The new rule was supposed to come into effect on Thursday, but will now be delayed for three months. Leading business figures had objected to the move, saying it would damage Hong Kong's status as a financial centre, and a Legco panel has passed a motion calling for the change to be scrapped. The measure was intended to counter insider trading an improve corportate transparency. The head of the Hong Kong Exchanges listing division, Richard Williams, said the measure was being postponed because of the concerns expressed. But he said it would not be withdrawn completely. The listing committee believed the rule was in the long-term interests of Hong Kong and the investing public.
