Chapter 8.8 – Changes Affecting the Business Model

March 2016

Chapter 8.10 – Appendix I – Examples of Questions Raised by Regulators in the Past to Test Business Sustainability

Chapter 8

Due Diligence Guidelines –

Business Model

9. Regulatory Guidance on Specific Industries

9.1 Guidance

9.1.1 The SFC and the Stock Exchange have in the past given specific guidance for listing issuers engaged in certain industries or types of business models, such as businesses involving distributors, forfeited payments, jointly controlled entities, contract-based structures (i.e., variable interest entities), mining businesses, PRC pawn loan business, restaurant business and agriculture. When dealing with these specific industries or business models, the sponsor should, in addition to the general guidance set out in this chapter, take into account the specific regulatory statements in discharging its due diligence duties.

9.1.2 Where relevant, please see also Chapter 14 “Due Diligence Guidelines – Distributors, Franchisees and Consignees”, Chapter 23 “Due Diligence Guidelines – Mineral Companies” and Chapter 24 “Due Diligence Guidelines – Biological Assets”.

Disclaimer

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.

Chapter 8.8 – Changes Affecting the Business Model

March 2016

Chapter 8.10 – Appendix I – Examples of Questions Raised by Regulators in the Past to Test Business Sustainability

Regulatory Guidance on Specific Industries

Jointly Controlled Entities

Specific Regulatory Statements for Jointly Controlled Entities

Specific Due Diligence Guidance

Contract Based Structures

PRC Pawn Loan Business

Restaurant Business

Agriculture

Mining Businesses

Hong Kong Stock Exchange
Securities Futures Commission (SFC) Hong Kong

Table of contents

Disclaimer

Hong Kong Sponsor Due Diligence Guidelines

2020 edition

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