Chapter 11

Due Diligence Guidelines –

Connected Persons and Connected Transactions

4. Reliance on Connected Persons

4.1 Guidance

The Stock Exchange normally considers reliance on connected persons to be a disclosure issue and requires a listing applicant to disclose details of its reliance upon connected persons. However, where the degree of reliance is extreme, the Stock Exchange may have concerns as to whether the listing applicant is suitable for listing. In relation to listing applicants in the internet technology sector or that have internet-based business model, the Stock Exchange has noted that it is prepared to accept a higher level of reliance on connected persons provided that certain conditions are met.14 The sponsor should refer to section 5 of Chapter 8 “Due Diligence Guidelines – Business Model” for the due diligence it should conduct in relation to the listing applicant’s reliance on connected persons.


14. Ibid.


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.

Connected Transactions

Listing Applicants Reliance on Connected Persons

Hong Kong Sponsors Due Diligence Guidelines

Due Diligence Guidelines Business Model

Connected Persons and Connected Transactions Reliance on Connected Persons

Listing Applicant’s Reliance on Connected Persons

Hong Kong Securities and Futures Commission (SFC)

Hong Kong Stock Exchange Listing Rules

Due Diligence Checklist

Due Diligence Process
Due Diligence Compliance

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