In 2005, the Hong Kong Exchanges and Clearing Limited (the “HKEx”) issued a listing decision (cited as HKEx-LD43-3) regarding a listing applicant incorporated outside Hong Kong (the “Applicant”), which controls an entity that is incorporated inside China (“OPCO”) to actually run the business via contractual arrangements. According to the decision, the HKEx, while adopting a disclosure-based regulatory approach, determined that in principle, the contractual agreements would not render the Applicant unsuitable for listing, as long as the financial results of the OPCO can be consolidated into the Applicant's and the Applicant and its business satisfy all conditions for listing [1] under the Listing Rules.
