HONG KONG - HSBC Holdings PLC (Hong Kong Stock Code: 5) has obtained several novel waivers from the rules governing its share buybacks and the management of its contingent convertible securities (CCSs), as per a company information sheet published on January 7, 2025. These waivers, granted by The Stock Exchange of Hong Kong Limited, allow the global bank to operate with greater flexibility in specific financial transactions.
One of the key waivers exempts certain purchases of HSBC's shares by its subsidiaries, including HSBC Securities (USA) Inc., HSBC Bank plc, and others, from the compliance with Rules 10.06(1) to (5) of the Hong Kong Listing Rules during their ordinary course of business as intermediaries. This exemption is conditional upon HSBC reporting the net long positions held by these subsidiaries when they exceed 0.5% of the company's issued shares.
Additionally, HSBC's subsidiaries have been permitted to manage, distribute, and deal in the company's CCSs without adhering to the same set of rules. This waiver is also subject to the condition of reporting net long positions exceeding the 0.5% threshold.
Another significant waiver relates to the company's ability to purchase its shares during closed periods or when in possession of inside information. The waiver allows for such buybacks in the United Kingdom (TADAWUL:4280) and Hong Kong, subject to the appointment of a broker on an irrevocable non-discretionary basis and adherence to certain purchase restrictions.
Furthermore, HSBC has been granted consent to issue new CCSs within 30 days after a share buyback, deviating from the usual requirement of seeking the Hong Kong Stock Exchange's approval before announcing new issues of shares.
The company has also received authority to issue CCSs in excess of the general mandate limit of 20% of the company's issued share capital, with this authority remaining in force until the next annual general meeting or until it is revoked or varied by shareholder resolution.
These waivers aim to facilitate HSBC's financial operations, particularly regarding share buybacks and the management of CCSs, which are common practices for financial institutions issuing debt securities. The directors of HSBC Holdings have committed to updating the company information sheet in case of any material changes.
The information is based on a press release statement and is intended to inform the public about HSBC Holdings plc (NYSE:HSBC)'s current regulatory standing regarding its financial dealings.
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