Can Hong Kong listed companies guarantee related parties?
Hong Kong listed companies cannot guarantee related parties. In view of the behaviors of controlling shareholders of listed companies that use listed companies to provide guarantees for them, which harms the interests of listed companies and other shareholders, China Securities Regulatory Commission has successively issued the Notice on Issues Concerning Guarantees Provided by Listed Companies to Others and the Notice on Issues Concerning Regulating Capital Exchanges between Listed Companies and Related Parties and External Guarantees of Listed Companies, stipulating that listed companies shall not provide guarantees for their controlling shareholders and other related parties. Therefore, listed companies in Hong Kong cannot guarantee related parties.