Hong Kong Exchanges & Clearing Ltd. · HKEX:388

Hong Kong Exchanges & Clearing — FINI Webinar (November 2022)

39 slides from Hong Kong Exchanges & Clearing's conference presentation, Nov 8, 2022

  1. Slide 1: FINI Updates and User Registration

    FINI Updates and User Registration Lukas Petrikas FINI Project Lead Maria Leung Head of Depository & Nominee Services, Operations Karina Chan Head of Post-Trade Systems, Information Technology Grace Kan Head of Special Advisory & Projects, Listing 8 November 2022

  2. Slide 2: Disclaimer

    Disclaimer The information contained in this presentation is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to subscribe for or buy or sell any securities or other products or to provide any investment advice or service of any kin

  3. Slide 3: Agenda

    Agenda 01 FINI Recap From June 2023, all new listings on SEHK will begin using the new FINI platform. 02 Timeline to Launch 03 How to Get Ready User Registration for FINI has just started. • Registration This webinar is for market participants who • Familiarisation & Testing are involved in IPO sett

  4. Slide 4: 01 FINI Recap

    01 FINI Recap 4

  5. Slide 5: FINI Recap

    01 FINI Recap  FINI is a new web-based system developed by HKEX to provide a common market interface for HK IPO settlement T+5 T+2  Connects IPO market participants to HKSCC, Listing Division and the SFC via a single unified portal  Replaces the CCASS EIPO terminal, physical placee lists and offl

  6. Slide 6: Using FINI will be Mandatory for

    01 Using FINI will be Mandatory for  Primary listings  Dual-primary listings  Ordinary equity securities  Secondary listings  Preferred shares  Listings by Introduction of  Depositary receipts  SPACs  GEM to Main Board transfers  Stapled securities  Trading resumption offerings  REITs 

  7. Slide 7: Who Should Use FINI?

    01 Who Should Use FINI? Designated Sponsor 1 4 Share Registrars HKSCC Other Sponsors Sponsor Counsel Designated EIPO Banks 2 5 SEHK Listing Division Issuer Counsel Issuer’s Receiving Banks Designated OCs HKSCC Participants SFC Corporate Finance 3 Other OCs 6 Division Distributors See Appendix for su

  8. Slide 8: 02 Timeline to Launch

    Re 02 | Timeline to Launch it . ==.

  9. Slide 9: Timeline to launch

    02 Timeline to launch HKEX plans to launch FINI around June 2023, subject to market readiness and regulatory approval TODAY 2020 2021 2022 ~ June 2023* FINI Concept Paper Conclusions Paper + FAQs Technical User Guides Registration Go-live * The actual launch date will be announced 2-3 months in adva

  10. Slide 10: Key Activities from Now to Launch

    02 Key Activities from Now to Launch Registration Testing Setup User Testing 8 November 2022 – 25 November 2022 – Q1 – Q2 2023 17 February 2023 31 March 2023  Register online for FINI access  Register for external testing  Test FINI platform functions  Sign and accept FINI T&Cs*  Set up VPN con

  11. Slide 11: FINI Launch Arrangement

    02 FINI Launch Arrangement  HKEX will announce a FINI Launch (“FL”) Date after receiving regulatory approvals and based on market testing completion and users’ readiness  New listings with prospectus publication on or after FL Date will need to use FINI and follow the new T+2 settlement timetable

  12. Slide 12: 03 How to Get Ready: Registration

    03 How to Get Ready • Registration 12

  13. Slide 13: 03a User Registration

    03a User Registration QR code alternative Online FINI Registration Form*  Click the link above to complete the online form on behalf of your company  Choose which FINI user categories you require (e.g. intermediary + sponsor)  Appoint Delegated Administrators who will administer your company’s ac

  14. Slide 14: 03a FINI User Registration Requirements (1/2)

    03a FINI User Registration Requirements (1/2) Eligibility Registration Sponsor 1 For Designated Sponsor +  Valid SFC Type 6 license Other Sponsors  Online FINI Registration Form Legal Counsel  Hong Kong Law Firm under the 2 For Sponsor Counsel  Accept FINI Terms & Conditions HK Law Society’s Law

  15. Slide 15: 03a FINI User Registration Requirements (2/2)

    03a FINI User Registration Requirements (2/2) Eligibility Registration  Online FINI Registration Form 4 HK Share Share Registrar Registrar  Member Memberof ofthe theHK HKFSR FSR  Accept FINI Terms & Conditions  Copy of Business Registration Certificate (upload)  Online FINI Registration Form H

  16. Slide 16: 03a FINI Registration Guide

    03a FINI Registration Guide QR code alternative  A FINI Registration Guide is available on the FINI webpage  Contains step-by-step walk-through and FAQs  Group entities (e.g. ABC Bank / ABC Securities Ltd.) should register each company for FINI separately*  Your company will receive an email dur

  17. Slide 17: 03a Registration for HKSCC Participants

    03a Registration for HKSCC Participants QR code alternative HKSCC Participants who are existing users of HKEX Client Connect  No action required  Your DAs will automatically receive access to create user accounts under the FINI CP user category in January 2023  HKSCC Participants may opt out from

  18. Slide 18: 03 How to Get Ready: Familiarisation & Testing

    03 How to Get Ready • Familiarisation & Testing 18

  19. Slide 19: 03b Familiarisation: Functional

    03b Familiarisation: Functional  Market participants must be familiar with the T+2 settlement timetable, FINI workflows & user interfaces  The FINI Information Pack continues to be updated with FAQs on all aspects of the FINI workflow for all users  HKEX will publish the following User Guides on

  20. Slide 20: 03b Familiarisation: User Management

    03b Familiarisation: User Management Following successful registration, access to HKEX’s production environment will be enabled for your company’s Delegated Administrators (DAs) in January 2023. Delegated Business Administrators Users Created / managed by HKEX Administrators Your company’s DAs Funct

  21. Slide 21: 03b Testing Setup

    03b Testing Setup  All FINI users are required to set up a Virtual Private Network (VPN) connection to access FINI’s test site  HKEX will support both Client-to-Site VPN and Site-to- Site VPN connectivity, at your company’s election  A VPN Connectivity Guide and Testing Registration form will be

  22. Slide 22: 03 How to Get Ready: Legal & Regulatory

    03 How to Get Ready • Legal & Regulatory 22

  23. Slide 23: 03c Legal and Regulatory (1/5)

    03c Legal and Regulatory (1/5) Consequential changes to Listing Rules  FINI will be the platform for processing of all future Hong Kong IPOs Mandatory nature of  Use of FINI will be mandatory FINI  Avoid confusion for investors and issuers, and duplication of costs Shortened settlement period  “

  24. Slide 24: 03c Legal and Regulatory (2/5)

    03c Legal and Regulatory (2/5) Consequential changes to Listing Rules Highlights  FINI will remain operational despite the issuance of Bad Weather Signals Shortened  Listing applicants must still comply with requirements under the HK settlement period company law* Digitalised streamlined  Automat

  25. Slide 25: 03c Legal and Regulatory (3/5)

    03c Legal and Regulatory (3/5) Revised “How to Apply” Guide  A revised “How to Apply” Guide for offerings under FINI  Replaces Exhibit III of Guidance Letter HKEX-GL86-16 and section 5.1.5 of Revised “How to the Guide to Eligibility and Admission of Securities to the Central Clearing Apply” Guide

  26. Slide 26: 03c Legal and Regulatory (4/5)

    03c Legal and Regulatory (4/5) Amendments to CCASS Rules and Operating Procedures (OPs)  Documents renamed to reflect HKSCC’s broader suite of services beyond CCASS* • General Rules of CCASS General Rules of HKSCC • CCASS Operating Procedures HKSCC Operating Procedures • CCASS Participants HKSCC Pa

  27. Slide 27: 03c Legal and Regulatory (5/5)

    03c Legal and Regulatory (5/5) Other key documents Renamed as “FINI Agreement”, reflecting new  EIPO Agreement settlement model and issuer’s authorising powers Minor amendments to reflect an issuer’s updated  Stock Admission Application Letter obligations under FINI Removed and incorporated into t

  28. Slide 28: 03 How to Get Ready (recap)

    03 | How to Get Ready (recap) 28

  29. Slide 29: Getting ready: checklist (1/2)

    03 Getting ready: checklist (1/2) Sponsors Designated Sponsors + Other Sponsors  At group level, identify entitles eligible for enrolling in applicable FINI user type(s)  Should enrol in FINI user type(s) that they foresee themselves performing in future IPOs Legal Counsels (e.g. Sponsor-OC), subj

  30. Slide 30: Getting ready: checklist (2/2)

    03 Getting ready: checklist (2/2)  Complete Online FINI Registration Form  Sign and accept FINI Terms and Conditions Share Registrars  Set up VPN connectivity for external testing  Complete early interface testing with HKSCC by January 2023  Complete Online FINI Registration Form (if needed) 

  31. Slide 31: Key Dates to Remember

    03 Key Dates to Remember Registration will commence… To be completed by… 8 November 2022 17 February 2023 On-boarding (Tue) (Thu) 25 November 2022 31 March 2023 Testing Setup (Fri) (Fri) To be announced around… Expected to be… Testing January / February 2023 Q2 2023 Launch March / April 2023 ~ June

  32. Slide 32: 04 Contacts & Support

    Re 04 | Contacts & Support it r ==. 32

  33. Slide 33: Resources

    04 Resources Available at https://www.hkex.com.hk/fini FINI Recap Concept Paper Updated FINI Concept Paper Conclusions Information Pack Timeline to Launch Online FINI FINI How to Get Ready FINI Terms & Updated FINI Registration Registration Conditions API Guide • Registration Form Guide • Familiaris

  34. Slide 34: HKEX Contacts for FINI

    04 HKEX Contacts for FINI Operating Hours: 09:00 to 18:00, Mondays to Fridays (excluding Public Holidays)  HKEX welcomes enquiries from the market +852 2211 5888 [email protected] 34

  35. Slide 35: Questions?

    Questions? For further information on HKEX, please go to hkexgroup.com and hkexnews.hk For further information on FINI, please go to hkex.com.hk/fini

  36. Slide 36: Appendix

    Appendix x

  37. Slide 37: A1 FINI User Roles & Access Methods (1/2)

    A1 FINI User Roles & Access Methods (1/2)  Manage IPO reference data and timetable Sponsor Through the FINI 1 For Designated Sponsor +  Manage deal access control for syndicate members / advisers internet portal Other Sponsors  Provide certain regulatory submissions to Listing Division / SFC Lega

  38. Slide 38: A1 FINI User Roles & Access Methods (2/2)

    A1 FINI User Roles & Access Methods (2/2)  Confirm public, preferential and employee offering subscriptions File transfer + 4 Share Registrar  Provide public offer allotment information FINI internet portal  Confirm HKSCC Participants’ EIPO pre-funding positions FINI Bank Through the FINI 5 For D

  39. Slide 39: B FINI Launch Arrangement Illustration

    B FINI Launch Arrangement Illustration Prospectus issuance date Listing date w/ public offer w/o public offer Final under CCASS T+5… First under FINI T+2… -2 -1 FL +1 +2 +3 +4 +5 +6 +7 +8 +9 +10 +11 Mon Tue Wed Thu Fri Mon Tue Wed Thu Fri Mon Tue Wed Thu CCASS T+5 Subscription Settlement List FINI T

Hong Kong Exchanges and Clearing — FINI Webinar (November 2022) on 6ix