In October 2023, The Stock Exchange of Hong Kong Limited (HKEx) published a guidance letter (the "Guidance Letter”) outlining the disclosure gaps identified in transaction circulars from their previous vetting. The Guidance Letter underscores the need for listed companies to provide adequate explanation of the basis of determining the consideration of the transaction by disclosing in the transaction announcement sufficient and objective information with quantitative inputs and analysis to substantiate how the consideration was arrived at.