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NameHong Kong Exchanges and Clearing Limited (HKEX)
CountryChina
Number of listed companies2,602
Domestic market capitalization4,567,683 million US$
SSE Partner ExchangeYes
Has annual sustainability reportYes

ESG reporting required as a listing ruleYes

Issuers must publish their ESG reports on an annual basis and regarding the same period covered in their annual reports. Reporting requirements can be found in the related Main Board Listing Rules (here) and the ESG Reporting Guide (the Guide), Appendix 27 to the Main Board Listing Rules(here).

With effect on 1 July 2020, the ESG Reporting Guide comprises two levels of disclosure obligations: (a) mandatory disclosure requirements; and (b) comply or explain provisions. Issuers must disclose the information required under the Mandatory Disclosure Requirements; and if the issuer does not report on any of the comply or explain provisions, it must provide considered reasons in its ESG report. The amendments had an emphasis in the boards leadership role and accountability in ESG and the governance structure for ESG matters. HKEX also introduced climate change disclosure requirements and incorporated elements of the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) into our Rules. In April 2022, the Exchange published a consultation on the enhancement of climate-related disclosures under its ESG framework. It proposes to mandate all issuers to make climate-related disclosures in their ESG reports, and introduce new climate-related disclosures aligned with the IFRS S2 Climate-related Disclosures exposure draft (as supplemented and modified by deliberations of the International Sustainability Standards Board (ISSB) up to April 2023). The consultation paper on the enhancement of climate-related disclosures under the ESG framework can be found (here).

Disclosure requirements on corporate governance issues are contained in the Corporate Governance Code, Appendix 14 to the Listing Rules(here). With effect on 1 January 2022, the Corporate Governance Code was revised to further enhance corporate governance standards among listed issuers in Hong Kong, specifically in the areas of corporate culture, director independence and diversity. The Corporate Governance Code mandates that IPO applicants must have at least one female director on board and existing listed issuers must appoint at least one female director on their boards by the end of 2024.

Issuers are required to publish ESG reports (covering financial year commencing on or after 1 January 2022) at the same time as publication of annual reports. Consultation paper and conclusions on the amendments can be foundhere.

Has written guidance on ESG reportingYes
Written guidance on ESG Report includes:

Offers ESG related trainingYes
All resources can be found on theHKEX ESG Academy, a centralised ESG educational platform launched in November 2021 to guide issuers and the broader business community in their sustainability journeys. The ESG Academy comprises several sections which houses all training and guidance materials published by the Exchange.In April 2022, the Exchange launched a new page headed ESG in Practice under the ESG Academy, which highlights the Exchanges latest ESG regulatory developments, and provides examples of exemplary ESG practices amongst its issuers.

The Exchange launchede-trainingcourses, for directors to help them develop and refresh their knowledge and skills so as to ensure that their contribution to the board remains informed and relevant.In May 2021, theESG Academy Webinar Serieswas launched to deepen ESG understanding and knowledge among listed issuers and the wider business community, and facilitate the integration of ESG considerations into their decision making processes. The Director Training Programme 2017/2018also covers the topic of ESG reporting.

HKEX representatives also gave presentations at events organised by various non-governmental organisations and professional organisationsto identify the latest trends and share practical advice in relation to ESG reporting.

In 2022, HKEX provided training on Climate-related Financial Disclosures (TCFD recommendations) in collaboration with the SSE, CDP and IFC. (source)

Market covered by sustainability-related indexYes

Has sustainability bond listing segmentYes
At the heart of STAGE is anonline product repository, which provides access and transparency on sustainable finance products, including sustainability, green, and transition instruments from issuers across a variety of sectors. STAGE is also an online source of sustainable and green finance educational resources, promoting knowledge sharing and stakeholder engagement.

Has SME listing platformYes
  • GEM, since 1999

Women on boards mandatory minimum ruleYes
Source:HKEX Listing Rules
Additional informationHKEX has been rated highly and awarded by both local and overseas rating agencies or professional institutions, in recognition of its achievement in corporate governance and CSR. More details are available on theHKEX Group website.

As part of the Exchanges ongoing initiative to raise the overall standard of ESG performance and disclosures among issuers, the Exchange has conductedmarket consultations on proposed changes to the ESG reporting requirements under the Listing Rules.In addition, the Exchange conducts periodic review of issuers ESG disclosures and publishes its findingsboth on theESG Academyand theHKEX Market website.

Organizational model of stock exchange
  • Listed company for profit; demutualized in 2000.

Regulatory bodies
Regulatory modelHKEX is a recognised exchange controller under the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). The Exchange is responsible under statute for ensuring, so far as reasonably practicable, that the Hong Kong markets are fair, orderly and informed (the Exchanges statutory duty). The Securities and Futures Commission performs a lead role in market regulation and certain areas of listing regulation and a complementary role through the exercise of its statutory powers by providing investigation and enforcement in cases involving corporate misconduct. Details of the regulatory framework of Hong Kongs securities market are available on theHKEX Market website.

About the stock exchange

Location: Hong Kong

Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code:388) and one of the worlds leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metals Exchange.

As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.

HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.

More information about HKEX and its subsidiaries is available on theHKEX Group website