Hong Kong Exchanges and Clearing Limited (00388.HK), a wholly owned subsidiary of the Stock Exchange of Hong Kong Limited, published an optimized consultation paper on the Code of Corporate Governance for Listed Issuers. The paper proposes a number of recommendations for listed issuers to improve the effectiveness and independence of their board of directors, promote diversity, strengthen risk management and internal control, and enhance capital management. Among the proposals is a requirement for listed companies to disclose their dividend policy and the board's dividend decision-making.

The consultation paper proposes that if the chairman of the board is not an independent person, a chief independent non-executive director must be appointed. Directors are required to complete specific theme training every year and there is a limit to the number of Hong Kong listed companies where independent non-executive directors can serve concurrently. In addition, independent non-executive directors will no longer be regarded as independent after serving for more than 9 years.

Starting from next year, the Stock Exchange will completely prohibit single-gender boards. The consultation paper also recommends that the nomination committee of listed companies must have directors of different genders and must review the diversity policy of the board of directors every year, as well as enhance disclosure requirements and formulate employee diversity policies.

Wu Jiehuan, the Listing Manager of Hong Kong Exchanges and Clearing Limited, stated that the Exchange is committed to improving the quality of listed issuers and promoting the long-term development of the capital markets and enhancing the attractiveness of the Hong Kong market by promoting corporate governance.