Hong Kong Exchanges & Clearing is working with the Securities & Futures Commission to finalise a proposal on the suspension of the "tick rule" for short selling in normal business situations. It aims to implement the proposal in the fourth quarter.

In its report on new product and market development initiatives published today, HKEx said the proposed suspension of the tick rule, when implemented, will further enhance the efficiency of the price discovery process on the Stock Exchange.

For more information on short selling and the tick rule click here.

On the possible introduction of depositary receipts, HKEx said it is studying the possible introduction of a framework that would allow issuers to list depositary receipts on the Stock Exchange.

The third party clearing model in the securities market has been finalised and an overview of the model will be published on the HKEx website in August together with Frequently Asked Questions. Implementation remains scheduled for the fourth quarter of this year.

HKEx is exploring new financial products and services and is conducting further studies on the renminbi futures. It has also appointed consultants to study the trading of commodities derivatives and emissions-related products.

On period financial reporting, HKEx plans to publish a consultation paper in the second half of this year on possible amendments to the Listing Rules on period financial reporting.