Securities regulators in Hong Kong have scaled back a plan that would have extended the blackout on share trading by company insiders to as long as seven months after more than 200 companies objected. Instead, a new proposal issued Thursday states that company directors and others with sensitive knowledge would be blocked from trading their shares for two months ahead of results announcements. The modified rule, which requires regulatory approval, is due to take effect April 1.
MarketWatch reports that currently the Hong Kong Stock Exchange bans trading by insiders one month ahead of results announcements. A one-month ban on trading ahead of interim results will remain unchanged.
Supporters of the tougher rule, as originally drafted, said it was necessary to bring the city’s regulatory regime in line with Western standards.
