appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Enoch Yiu

The Hong Kong stock exchange has proposed easing requirements for listed companies to disclose corporate transactions and seek shareholder approval, while also making it easier for issuers to spin off businesses, according to a consultation paper released on Monday.
The 10-week consultation, which runs until November 30, proposes removing the profit test currently used to determine whether a transaction requires disclosure or shareholder approval. Companies would instead use market capitalisation or net asset value, whichever is higher.
The proposal would also reduce the number of transactions requiring shareholder approval. Deals equivalent to between 25 per cent and 50 per cent of a company’s size would require disclosure only, rather than shareholder approval under current rules.
According to the consultation paper, regulators in the UK and Singapore had already relaxed similar requirements, increasing pressure on Hong Kong to remain competitive.
The exchange has also proposed expanding the definition of connected subsidiary by raising the voting-rights threshold to 30 per cent from 10 per cent.
Separately, the exchange wants to relax spin-off rules by allowing eligible companies to assess proposed spin-offs without seeking prior approval from the exchange.
The exemption would apply to companies with a market capitalisation of more than HK$10 billion (US$1.3 billion) and annual revenue exceeding HK$1 billion, or those that would retain businesses accounting for more than 50 per cent of revenue and assets after a spin-off.
The proposal would replace the current requirement that all spin-offs obtain the exchange’s prior approval.
The exchange also wants to shorten the post-listing waiting period for spin-offs to one year from three years.
“This reform seeks to give issuers greater flexibility and certainty in their corporate transactions, increasing efficiency in terms of costs and time while upholding investor protection through timely, meaningful disclosure and strong board accountability,” said Katherine Ng, head of listing at Hong Kong Exchanges and Clearing (HKEX), the holding company of the stock exchange.
“At HKEX, we are committed to enhancing our listing framework so that it meets the evolving needs of Hong Kong’s increasingly diverse ecosystem of issuers and investors.”
Ng said the proposals represented the second phase of the exchange’s listing reforms, following changes introduced in July that eased listing requirements for companies with weighted voting rights.


Hong Kong stock exchange moves to ease spin-offs and shareholder approval rules

4 mainland Chinese firms jump into cooling Hong Kong IPO market

How Hong Kong’s new 5-year plan courts global capital with an eye on market dominance

Hong Kong to support rocket, satellite IPOs as SpaceX-led sector takes off

HKEX

HKEX is targeting faster corporate deals with new spin-off and disclosure reforms. Photo: Jelly Tse

For China’s hi-tech IPOs, it’s Hong Kong vs the mainland – but how much does it matter?

China’s emerging technology firms often have to make a decision on where to list – Hong Kong or the mainland. Photo: Getty Images

Next for Hong Kong’s exchange: ‘more products on our shelf’, HKEX boss pledges

A flag showing the logo of Hong Kong Exchanges and Clearing flies outside Exchange Square in Central, where the company has its headquarters, on July 21. Photo: Jelly Tse

(L-R) HKEX’s Richard Leung, group chief information officer; Herbert Hui, group chief financial officer; Bonnie Chan, CEO; Vanessa Lau, chief operating officer; and Gregory Yu, head of markets, attend the company’s results presentation in Exchange Square in Central on Wednesday. Photo: Nora Tam

HKEX pushes ahead on extended trading hours discussions as it prepares paper: sources

Hong Kong Exchanges and Clearing is considering extending trading hours to sharpen the city’s competitiveness as a financial centre. Photo: Jelly Tse

Hong Kong faces pressure to speed up trading hours review after South Korea’s move

A South Korean stock trader looks at monitors at the Hana Bank in Seoul. Photo: EPA

Business

Proposals aim to streamline corporate actions and align Hong Kong more closely with rival markets, HKEX says


Proposals aim to streamline corporate actions and align Hong Kong more closely with rival markets, HKEX says.


Hong Kong stock exchange moves to ease spin-offs and shareholder approval rules

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Proposals aim to streamline corporate actions and align Hong Kong more closely with rival markets, HKEX says

Proposals aim to streamline corporate actions and align Hong Kong more closely with rival markets, HKEX says