HKEx announced that it has reached an agreement with the Shanghai and Shenzhen stock exchanges to allow companies with dual-class stock structures listed in Hong Kong – called WVRs (WVRs) – to be traded by mainland investors through the Stock Connect program. This will be welcome news for the two WVR companies currently listed in Hong Kong – Xiaomi Corporation and Meituan Dianping (Skadden advised on both of these IPOs in 2018) – as well as other emerging candidates on the WVR list. HKEx is developing detailed rules for the implementation of the agreement and these rules should be communicated to the market for implementation by mid-2019. These amendments apply only to new leases entered into after the application of HKFRS/IFRS 16 for financial years beginning on or after 1 January 2019. 4. The last publicly traded shenji Group Kunming Machine Tool Company Limited (Shenji Group) issued an opinion in November 2015 on a possible sale of Shenji Group shares by a key shareholder. The notice (i) did not disclose the conditions precedent for the transfer of shares, including the need to obtain approval from certain Chinese authorities, and (ii) the long termination date after which the share transfer agreement would automatically terminate if these conditions were not met. Shenji Group announced on February 5, 2016 that the necessary authorizations had not yet been obtained and that the transfer of shares was effectively subject to a three-month shutdown date, which expires on February 8, 2016. On February 17, 2016, Shenji Group announced the termination of the share transfer agreement.

The former director, who was involved in the preparation and publication of the announcement, did not cooperate with HKEx reactively during the investigation process. The listing committee decided to censor the Shenji Group and the former director of the shortcomings in the announcement. 5. Agreements relating to the parties to the concert and related securities submitted to the Exchange pursuant to Article 326(6) of the SFO (concerning communications filed from 1 April 2003 to 2 October 2017 concerning pleas other than DION System) Note In the proceedings against CMBC Capital Holdings Limited (formerly known as Mission Capital Holdings Limited (Mission Capital)), SFC asserts: that, on October 13, 2014, the directors of Mission Capital held unaudited management accounts for the five months of August 31, 2014, which showed a significant improvement in financial performance compared to previous periods, but only on November 7, 2014 a profit warning. HKEx has outlined the following key areas where there is potential for improvement: The Bulletin reminds directors to exercise sufficient diligence, capacity and diligence in assessing, proposing or authorizing corporate transactions. . . .

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