HKEX opens door for diverse innovative firms to list, expand confidential filings, with biggest reforms since 2018
Bourse operator lowers bar for companies with weighted voting rights and expands the confidential filing option for all listing candidates
Hong Kong Exchanges and Clearing (HKEX) has unveiled its biggest listing reforms since 2018, broadening its special listing regime for innovative companies and opening the door for smaller and more diverse firms to list in the city, the bourse operator said on Friday.
The exchange also proposed expanding the confidential filing option to all new listing applicants, replacing the current rule that applies only to secondary listings or certain technology applicants.
The reform was seen as necessary for Hong Kong to maintain its competitiveness as other stock markets such as the US, Britain, Singapore and Japan had also introduced changes to attract new initial public offerings, said Katherine Ng, head of listing at HKEX.
“The listing threshold in Hong Kong for innovative companies is higher than in other markets,” Ng said at a media briefing announcing the consultation paper, which will collect views until May 8.
“Some companies have expressed interest in listing in Hong Kong but consider our threshold to be too high. If we are not doing anything, we will lose out to other markets.”
HKEX proposed lowering the minimum threshold for companies to list under the weighted voting rights (WVR) regime to a minimum valuation of HK$20 billion (US$2.6 billion), half the current requirement of at least HK$40 billion.