Stock exchange operator Hong Kong Exchanges and Clearing (HKEX) will allow all listing applications to remain confidential and will reduce market-capitalisation requirements for listings by start-ups and international firms immediately, it announced on Friday.
Confirming a report by the South China Morning Post, HKEX will proceed with confidential filing as it proposed in March in its biggest set of listing reforms since 2018.
The exchange will also reduce the market-cap requirements for weighted voting right (WVR) companies to HK$20 billion (US$2.6 billion), from HK$40 billion currently. It will also lower the thresholds for a company using the revenue test to HK$6 billion in market capitalisation and HK$600 million in revenue in the most recent financial year, compared with HK$10 billion in market cap and HK$1 billion in revenue now.
While some respondents in a consultation process requested lower thresholds, HKEX said most respondents agreed with the chosen reductions, and the proposal in March was in line with the levels in Shanghai and Shenzhen. The exchange received 73 responses during the consultation from March to May.
The market cap requirement for overseas-listed innovative companies launching secondary listings in Hong Kong will also be lowered to HK$6 billion from HK$10 billion.
The reforms aim to attract more innovative companies from around the world to list in Hong Kong.