Market Turnover
-






-
-
|
|
|
|
|
|
-
-
-
Loading

HKEx Publishes Consultation Conclusions on Proposed Change to Minimum Number of Shareholders for Market Capitalisation/Revenue Test

Corporate
Market Operations
21 Jan 2011

Hong Kong Exchanges and Clearing Limited (HKEx) published consultation conclusions today (Friday) on a proposed change to the Market Capitalisation/Revenue Test under the Listing Rules for the Main Board.

The consultation sought views on a proposed reduction of the minimum shareholder requirement for the Market Capitalisation/Revenue Test from 1,000 to 300 shareholders.

HKEx received 11 responses from a group that comprised listed issuers, professional and industry associations, market practitioners and individuals.  All supported the proposal and HKEx has decided to change the requirement.

"Respondents agreed the current minimum shareholder requirement should be lower”, said Mark Dickens, HKEx’s Head of Listing.  

"The two alternative tests to the Market Capitalisation/Revenue Test, the Profit Test and the Market Capitalisation/Revenue/Cash Flow Test, require an applicant to have at least 300 shareholders,” Mr Dickens said.  “In addition, the Exchange considers that the large public float requirement that applies when an applicant lists using the Market Capitalisation/Revenue Test and at least 300 shareholders should be sufficient to ensure an open market and adequate retail investor participation.”

Details and Implementation Date

The Consultation Conclusions on the Proposed Change to the Minimum Number of Shareholders for the Market Capitalisation/Revenue Test can be downloaded from the “News & Consultations – Market Consultations – Consultation Conclusions” section of the HKEx website.

The Rule amendments can be downloaded from the “Rules & Regulations – Rules and Guidance on Listing Matters –Amendments to Main Board Listing Rules” section of the HKEx website.

The Rule amendments will be effective from 1 February 2011.


Ends

Updated 21 Jan 2011