PARTIES INVOLVED IN A NEW LISTING

A listing exercise involves various professional parties which have their own unique roles in the process.

1. Sponsors

A company must appoint a suitable sponsor for its listing proposal. The sponsor will be responsible for preparing the company for listing, lodging the formal listing application and all other required documents with the Exchange. Usually a sponsor also arranges dealing with other professional parties involved in a new listing. Therefore a new applicant can subsequently simplify the listing in Hong Kong by choosing a suitable sponsor. A sponsor must be a corporation or an authorized financial institution licensed by or registered with the Hong Kong Securities and Futures Commission.

2. Reporting Accountants

A company shall prepare its financial statements as a part of the supporting documents required for a new listing in the Hong Kong Exchange. All accountants' reports must be prepared by professional accountants who can satisfy the following terms:

• independence from an issuer; and
• qualified under the HK Professional Accountants Ordinance.

3. Legal Advisers

Legal advisers are responsible for ensuring that the new applicant will be in compliance with the laws of each of the relevant jurisdictions.

4. Underwriters

These are typically licensed securities firms and financial institutions. They are responsible for distributing the securities of the company during a share offering.

5. Valuers

Valuers are required to be appointed to attribute a value to a new applicant's properties prior to a listing.

6. Depositary (for issuance of HDR)

A depositary is a financial institution acceptable to the Exchange. The depositary is appointed and authorized by the HDR issuer to issue HDR as agent of the issuer; it also holds the shares represented by the HDR.