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Hong Kong Exchange to Permit Confidential Filings and Ease Market-Cap Rules for Listings
Hong Kong Exchanges and Clearing will proceed with listing reforms permitting confidential filings and a reduced market capitalisation requirement. The changes follow months of consultations that began in March and aim to strengthen competitiveness against other markets. An announcement is expected by the end of July.
Jul 20, 10:30 PM·1m read1 source
South China Morning PostAudio version
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Hong Kong Exchanges and Clearing will allow confidential filings and reduce market capitalisation requirements for some listings in reforms that represent the largest set proposed since 2018, South China Morning Post reported. Under the mechanism, candidates would disclose certain details only after their listings receive approval.
Market capitalisation requirements for weighted voting right companies and international listings may also fall below the levels originally proposed in March. The changes form part of the exchange operator’s effort to increase its international competitiveness.
Consultations with market participants that began in March produced the decision, with an announcement expected by the end of July. “The exchange would need to compete with other markets to fight for the start-ups to list here, which is why confidential filing and a lower market capitalisation are important,” one source said.
A second source stated that a majority of market participants support confidential filing, which led the exchange to move forward with the plan.
