Disclosure of information by Hong Kong-listed companies can be a risky issue in the age of social media
Social media sites are among the most popular websites on the internet. Sina Weibo, China’s most popular microblogging website, is the sixth-most visited website in China (its parent website, Sina.com, ranks fourth) and now boasts over 400 million registered users.
It is perhaps no surprise that chairmen, CEOs and senior management of companies – including many listed on the Hong Kong stock exchange – have also taken to social media to display their tech credentials and keep stakeholders apprised of new developments.
However, there are potential pitfalls that need to be kept in mind if any information disclosed relates to companies listed on the Hong Kong stock exchange, and listed companies would be well served by having a clear policy on the use of social media to help guide their management and employees. The use of social media as a platform for information disclosure gives rise to a number of legal and regulatory issues, including:
