After asserting that the blackout rule would not change because of the sudden protest by a group of listed company directors three days before the rule was supposed to be implemented, the Hong Kong Stock Exchange has finally succumbed to the pressure of the ultra-wealthy company directors and politicians, and has backed down to make the new blackout plan more palatable to the wealthy company directors.
Under the new rule that will come effect on 1 April 2009, the black out period for insider dealing will be 60 days for annual report, and 30 days for quarterly or other interim reports.
This is just another blatant example of the government catering for the rich people. What’s going on with the SFC and the HKEx staying so firmly on their position and then bowing down to political pressure a few months later?
