HONG KONG: HKEX Announces Effective Date for New Listing Regime

Tuesday April 24 2018

On 24^th  April 2018, the Stock Exchange of Hong Kong Limited announced that the proposed new rules to broaden Hong Kong’s listing regime will take effect on 30^th  April 2018. From this date companies in emerging and innovative sectors seeking to list under the new regime may submit formal applications.

The Exchange noted that there has been ovewhelming support for the rules following a public consultation process which considered the contributions from Market Participants on the rules.

The new listing regime will facilitate three major changes to the Main Board Listing Rules (Listing Rules or Rules)

• permit listings of biotech issuers that do not meet any of the Main Board financial eligibility tests;
• permit listings of companies with weighted voting right (WVR) structures; and
• establish a new concessionary secondary listing route for Greater China and international companies that wish to secondary list in Hong Kong.

In accordance with these new rules the Exchange has proposed appropriate investor safeguards. These include detailed criteria for determining the suitability of applicants, a higher market capitalisation requirement, as well as enhanced disclosure requirements.

These additional safeguards will be subject to an additional consultation which will be launched on 31^st July 2018.

For additional information please click the link above.