Internal Control

In July 2023, the Securities and Futures Commissions ("SFC") and the Accounting and Financial Reporting Council ("AFRC") issued the first joint statement highlighting common regulatory concerns regarding loans, advances and prepayments arrangements for listed issuers.
 
Listed companies are advised to consider the Statement as an official guideline and evaluate their internal controls and implement necessary enhancements to align with the recommended practices.  
 
<a href="../../../../../uploads/AVISTA_Insights_20230731_83e33f2d49.pdf" target="_blank" rel="noopener">Read the summary of the Statement now</a>
 
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CFA, FCPA, FCPA (Aust.), MRICS, RICS Registered Valuer
Vincent is the Founder and Managing Partner of AVISTA Group, who leads the firm’s Valuation Advisory, Risk Management Advisory, ESG Advisory and Corporate Advisory services in Hong Kong and the PRC.
Vincent has over 20 years of experiences in valuation advisory, M&amp;A advisory, business consulting and corporate investment, advising clients in a range of industries, including TMT, financial services, pharmaceutical, energy and etc. Hence, leading the firm to make breakthroughs in these areas.
Before founding AVISTA, Vincent served as an Associate Director of PwC and was in charge of the valuation division in Beijing. He has advised numerous large M&amp;A deals in both China and overseas for multinational corporations and Chinese state-owned enterprises. He also has extensive experiences in providing valuation services for US and HK IPO listing.
Vincent is the Vice Chairman of Business Valuation Committee and the Executive Council Member of The Hong Kong Independent Non-Executive Director Association (HKiNEDA), Reviewer of HKICPA Best Corporate Governance and ESG Awards, Head Juror of Institute of ESG and Benchmark (iESGB) Achievement Awards, and the member of Financial Reporting Valuation Advisory Panel of HKICPA.

VINCENT PANG

Managing Partner

Summary of SFC and AFRC Joint Statement on Loans, Advances and Prepayments Arrangements

Taking reference to compliance development of other stock exchanges, previous consultations, and years of corporate governance reports review results, HKEX would like to introduce a series of listing rules amendments. A consultation paper has been published in June2024 to collect market’s feedback. According to the consultation paper, except for the proposed amendment in relation to long serving independent non-executive director(“INED”) and overboarding with a three-year transition period starting January 2028, other amendments will take effect since January 2025. Most amendments are newly introduced practices, and thus companies are recommended to arrange resources promptly to prepare for the new compliance requirements by 2025.
 
<a href="../../../../../uploads/Amendments_to_the_Hong_Kong_Stock_Exchange_s_Corporate_Governance_Code_and_Related_Listing_Rules_V6_e6b9c5f6f4.pdf" target="_blank" rel="noopener">Read the summary now</a>
<a href="../../../../../uploads/Amendments_to_the_Hong_Kong_Stock_Exchange_s_Corporate_Governance_Code_and_Related_Listing_Rules_V6_e6b9c5f6f4.pdf" target="_blank" rel="noopener"><img src="../../../../../uploads/Screenshot_2024_06_26_at_10_47_11_AM_313be3145b.png" width="500" /></a>

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Amendments to the Hong Kong Stock Exchange's Corporate Governance Code and Related Listing Rules

The International Accounting Standards Board (“IASB”) has published the Exposure Draft on Business Combinations — Disclosures, Goodwill and Impairment (the “Exposure Draft”) in March 2024, proposing changes to IFRS 3 and IAS 36 to improve the information provide to investors in order to help investors better assess management’s decision to make an acquisition and the performance of that acquisition. Companies should pay attention to the potential impact of the Exposure Draft and ensure their compliance with the latest rules and disclosure requirements.
 
<a href="../../../../../uploads/IASB_Exposure_Draft_on_Business_Combinations_Disclosures_Goodwill_and_Impairment_V3_79e696e4f5.pdf" target="_blank" rel="noopener">Read the report now</a>
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IASB Exposure Draft on  Business Combinations — Disclosures, Goodwill and Impairment

The Stock Exchange of Hong Kong Limited (the “HKEX”) has published the Guide for New Listing Applicants (the “Guide”), effective from 1 January 2024, introducing the new chapter on prospectus disclosure requirements and guidance in relation to Corporate Governance and Environmental, Social and Governance (“ESG”) (Chapter4.3 of the Guide). Listing applicants should pay attention to the impact of the Guide on the contents of the prospectus, in order to timely assess and optimize the proposed listing timetable.
 
<a href="../../../../../uploads/HKEX_s_Latest_Prospectus_Disclosure_Requirements_on_Corporate_Governance_and_Environmental_Social_and_Governance_under_the_Guide_for_New_Listing_Applicants_V6_5de8f68b61.pdf" target="_blank" rel="noopener">Read the report now</a>
<a href="../../../../../uploads/HKEX_s_Latest_Prospectus_Disclosure_Requirements_on_Corporate_Governance_and_Environmental_Social_and_Governance_under_the_Guide_for_New_Listing_Applicants_V6_5de8f68b61.pdf" target="_blank" rel="noopener"><img src="../../../../../uploads/Screenshot_2024_01_19_at_6_41_52_PM_e6c9255108.png" width="500" /></a>

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HKEX’s Latest Prospectus Disclosure Requirements on Corporate Governance & Environmental, Social and Governance under the Guide for New Listing Applicants 