The Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of the Hong Kong Stock Exchange, published a consultation paper (consultation paper) on the proposed amendments to the Listing Rules relating to treasury shares (consultation summary). The amendments to the Listing Rules will take effect on June 11, 2024. Major changes to the Listing Rules include: removing provisions relating to cancellation of repurchased shares to allow issuers to hold repurchased shares in inventory in accordance with the law of the place of registration and its articles of association; issuers are required to comply with the requirements of the Listing Rules currently applicable to issuing new shares; reducing the risk of securities market manipulation and insider trading through the following methods to maintain a fair and orderly market, and amend the Listing Rules accordingly. The Exchange will also make a number of minor amendments to the Listing Rules as described in the consultation summary.