Chapter 30

Due Diligence Guidelines –

Provision of Information to Analysts

Addendum 1: Analysts’ Dos and Don’ts

• DO NOT ask for material information that is not reasonably expected to be included in the prospectus or is not publicly available (“impermissible information”)

“Material information” is information material to an investor in forming a valid and justifiable opinion of the issuer and its financial condition and profitability. Material information can be historical or forward-looking.

• DO NOT ask for projections or forecasts unless they will be in the prospectus.

• DO try to pre-clear your questions with Legal/Compliance.

• DO ask Legal/Compliance before asking the question if you have any doubt that the information you seek is permitted or not. Legal/Compliance will discuss with ECM/IBK/Outside Counsel and decide whether you are asking for impermissible information.

• DO advise Legal/Compliance immediately if you receive information that would be expected to be in the prospectus but is not. Legal/Compliance will advise the sponsor and the issuer. It will then be for the sponsor and issuer to consider whether this information is material, and if so, ensure that it is included in the prospectus. Worst-case scenario: you got impermissible information that will not be in the prospectus – you will be prevented from publishing.

• DO only use information that is reasonably expected to be included in the prospectus or that is publicly available, and DO keep a record of the source of such information.


HKCFEF Limited and the contributing law firms, accountants and sponsors are not offering these due diligence guidelines as legal, financial or professional advice or services and they should not be relied upon as such. These due diligence guidelines should not be used as a sole basis for any decision, action or inaction and are not meant to serve as a substitute for the advice of qualified professionals. See here for the full terms and conditions.

Due Diligence Guidelines

Impermissible Information


Hong Kong Sponsors Due Diligence Guidelines

Impermissible Information not Expected to be in Prospectus and is Not Publicly Available

Addendum 1 Analysts Dos and Don’ts

Provision of Information to Analysts

Material Information

Due Diligence Checklist

Due Diligence Process

Due Diligence Compliance
Record Source of Information
Legal Compliance

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