Common types of corporate actions of Connect Securities include but are not limited to cash dividend, bonus issues and voting etc. Besides, take-over offers and rights issue/ open offer may occur but they are relatively uncommon. HKSCC will keep CCASS participants informed of the corporate actions of Connect Securities, in particular those that require CCASS Participants / investors to take actions.
Cash Dividend/Bonus Issues
To the extent practicable arrangement, the cash dividend distribution arrangement would be similar to the SEHK.
Client can give a SSE Securities voting instruction via Phillip Securities. Hong Kong and overseas investors of SSE / SZSE Securities will not be able to attend meetings themselves or as proxy in person.
Take-over offers and rights issue/ open offer
For Take-over offers, the offer period of SSE Securities normally will be around 30 days. Client who is qualified can accept the take-over offers during the offer period via Phillip Securities. For right issue/ open offer, the subscription period of SSE Securities normally will be around one week, but it may be as short as one business day only. Client who is qualified can subscribe for the rights/ open offer during the subscription period via Phillip Securities. Rights/ open offerare non-tradable
. No excess application is available in general.
Initial public offering (IPO)
Initial public offering (IPO) It is currently contemplated that Shanghai-Hong Kong Stock Connect will not support initial public offering.
* Investors should note that the time for them to take actions for some types of corporate actions of SSE Securities may be as short as one business day only. * Client should note and comply with the arrangement and deadline specified by Phillip Securities in order to participate in the corporate actions relating to their SSE Securities.
All approved corporate actions of SSE Securities and SZSE Securities are announced by issuers through the SSE website or the SZSE website, as the case may be, and officially appointed newspapers (both the printed papers and their websites): the Shanghai Securities News, Securities Times, China Securities Journal, Securities Daily and www.cninfo.com.cn.
Investors are reminded that issuers listed on the ChiNext Market are required to publish certain corporate announcements on their corporate websites and the officially appointed websites only. HKSCC will also record all corporate actions relating to SSE and SZSE Securities in CCASS and advise CCASS Participants of the details via the CCASS terminals as soon as practicable on the announcement date. Hong Kong and overseas investors can visit the SSE, SZSE and newspaper websites for the latest listed company announcements.
Hong Kong and overseas investors can also visit HKEX website’s China Stock Markets Web for the company announcements of Connect Securities issued on the previous trading day.
Securities received by investors
Hong Kong and overseas investors may receive securities which are not already accepted as SSE Securities as a result of any distribution of rights (including the right to subscribe for rights issues or open offers) or entitlements, conversion, takeover, other corporate actions or special circumstances:
- If such securities are SSE-listed securities and traded in RMB, Hong Kong and overseas investors will be allowed to sell them through Shanghai Connect; and
- if such securities are not SSE-listed securities, Hong Kong and overseas investors will not be able to sell them through Shanghai Connect. HKSCC will consider alternative arrangements to handle such securities and will notify CCASS Participants accordingly.