- The Exchange publishes proposals in the first phase of its listing framework competitiveness review
- These proposals seek to broaden the diversity of companies eligible for listing in Hong Kong, enhancing investor choice while upholding robust standards of investor protection
- Consultation period to last eight weeks until 8 May 2026
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Friday) published a consultation paper seeking market feedback on a set of proposals to enhance the competitiveness of Hong Kong's listing framework (the Consultation Paper).
The Exchange's proposals seek to foster a more inclusive and dynamic market environment, offering a broader range of investment opportunities to support the needs of both investors and issuers. Key measures include optimising the weighted voting rights (WVR) listing requirements, and enhancing the pathway for overseas listed issuers to list in Hong Kong, amongst other recommendations.
HKEX Head of Listing, Katherine Ng, said: "At HKEX, we are committed to maintaining a robust and competitive listing framework, underpinning Hong Kong's position as a leading international financial centre. We are pleased to put forward these proposals following extensive engagement with stakeholders, who want broader access to high-quality, innovative investment opportunities, alongside a more efficient and progressive listing framework that upholds investor trust and confidence."
Ms Ng added: "These proposals build on the success of our 2018 listing reforms, which fundamentally reshaped the composition of Hong Kong's stock market, fuelling a surge of innovative company listings. We welcome feedback on the proposals and look forward to continued engagement with stakeholders. Together, we can further strengthen Hong Kong's position as the leading fundraising destination for growth companies and a premier market for global capital seeking opportunities in Asia."
Key Proposals
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Subject
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Current Requirements |
Key Proposals
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Weighted voting rights
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Financial eligibility for listing
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Market capitalisation: (A) ≥ HK$40 billion; or (B) ≥ HK$10 billion and revenue for the most recent audited financial year ≥ HK$1 billion.
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To lower the thresholds to market capitalisation: (A) ≥ HK$20 billion; or (B) ≥ HK$6 billion and revenue for the most recent audited financial year ≥ HK$600 million.
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Voting power and economic interest
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Weighted voting ratio ≤ 10:1.
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To allow a higher weighted voting ratio cap of 20:1 if market capitalisation at listing ≥ HK$40 billion.
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WVR shareholding percentage ≥ 10% at listing (a lower percentage may be accepted on a case-by-case basis).
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To allow WVR shareholding percentage ≥ 5% only if it represents an amount of ≥ HK$4 billion at listing.
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3.
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Innovativeness and external validation
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An applicant must demonstrate that it is an "innovative" company for listing with WVR.
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To refine the "innovative" test to explicitly provide a path to listing, with WVR, for non-tech issuers applying a new business model.
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Applicants that are Biotech Companies or Specialist Technology Companies1 are presumed to be innovative
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To expand the scope of technology companies presumed to be innovative (including qualified biotech and specialist technology companies even if they do not seek to list under Chapter 18A / 18C).
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An applicant must have previously received meaningful third-party investment from at least one sophisticated investor.
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To provide greater clarity on external validation requirements.
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Issuers listed overseas
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4.
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Qualification requirements for secondary listing
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WVR: two-year compliant track record on a Qualifying Exchange2 with same financial eligibility thresholds as primary WVR listings.
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WVR: To lower financial eligibility thresholds to match those for primary WVR listings (see item 1).
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Non-WVR: market capitalisation: (A) ≥ HK$3 billion (for a five-year compliant track record on a Qualifying Exchange or Recognised Stock Exchange3); or (B) ≥ HK$10 billion (for a two-year compliant track record on a Qualifying Exchange)
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Non-WVR: To lower the HK$10 billion market capitalisation threshold under test (B) to HK$6 billion.
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5.
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Conversion to primary listing
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Guidance is available to facilitate conversion from secondary listing to (dual) primary listing.
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To redraft requirements for conversion to primary listing and provide more guidance on typical steps required for compliance.
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6.
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Further facilitative measures for issuers listed overseas
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N/A
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To seek views on measures to further facilitate listings of issuers listed overseas.
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Initial listing requirements and listing arrangements
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7.
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Ownership continuity and control
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An applicant must have been operating as an integrated unit under the same shareholder who is able to exert substantial influence on the management in the relevant period.
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To codify existing guidance: an applicant will be considered to have satisfied this requirement if it can demonstrate that there was no material change in influence on management during the relevant period despite a change in ownership.
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8.
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Financial reporting standards
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An applicant listed / to be listed in US seeking a dual primary or secondary listing in Hong Kong may apply for a waiver to adopt US GAAP.
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To expand the allowance of US GAAP to subsidiaries of US-listed parents and companies with substantial US business operations.
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US GAAP reporters must revert to HKFRS or IFRS upon a US delisting.
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To remove this requirement.
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A reconciliation statement for unaudited financial results must be reviewed by auditors.
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To remove this requirement.
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9.
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Commercialised biotech and specialist technology applicants
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A Biotech Company or Specialist Technology Company must list under ordinary route to listing, and not the specialist routes (Chapters 18A or 18C), if it can meet any financial eligibility test under Chapter 8 of the Main Board Listing Rules.
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To permit such applicants to seek a listing as a Biotech Company or Specialist Technology Company under the specialist routes even if they are financially eligible under ordinary route to listing.
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10.
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Confidential filing
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Confidential filing option is only available to eligible secondary listing applicants, Biotech Companies and Specialist Technology Companies, or subject to case-by-case waivers for other applicants.
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To expand the confidential filing option to all new applicants.
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An application that is not substantially complete may be returned, upon which the sponsor's identity will be displayed on the Exchange's website.
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To enhance the return mechanism to display (apart from the sponsor's identity) also the identities and roles of the professional parties responsible for the application materials upon a return of the listing application.
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The Exchange welcomes market feedback on its proposals. The consultation period ends on Friday, 8 May 2026. Interested parties are encouraged to respond to the Consultation Paper by filling out and submitting a questionnaire on the HKEX website.
The Exchange will carry out its competitiveness review of the listing framework in phases. This Consultation Paper is the first step of this review. Proposals on other potential reforms will be published in consultation papers in due course.
Notes:
- Applicants seeking to list under Chapters 18A and 18C of the Main Board Listing Rules.
- Qualifying Exchanges are the New York Stock Exchange, Nasdaq Stock Market, and the Main Market of the London Stock Exchange plc.
- Pursuant to Main Board Rule 1.01 (GEM Rule 1.01), a list of Recognised Stock Exchanges is published on the Exchange's website and will be updated from time to time.
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.
As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.
HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.
www.hkexgroup.com
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