- Review of progress in 2019
- 2020 focus on market development and further raising market quality
- Policy agenda aims to further broaden investment opportunities in Hong Kong markets
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Monday) published its Listing Committee Report for 2019, a review of the Listing Committee’s work during the year and an overview of its policy agenda for 2020 and beyond.
The Exchange and the Listing Committee had a busy and important 2019. The 2018 reforms to facilitate the listing of companies from emerging and innovative sectors1 continued to yield positive results in 2019. A total of 10 companies were listed under the new listing chapters, accounting for 37 per cent of the total amount of funds raised during the year. This included nine new biotech companies listed under Chapter 18A, as well as Alibaba Group Holding Limited, the first secondary listing under Chapter 19C and Hong Kong’s biggest listing in 2019. These new listings helped expand the diversity of choice available to investors on the Exchange.
“It was very encouraging to see new economy listings proceed at pace last year following the new Listing Rule chapters that the Committee implemented in 2018. In 2019, we continued to focus on upholding the quality and reputation of the Exchange’s markets by concluding market consultations relating to backdoor listings and on disclaimer opinions, whilst also implementing the new delisting regime. In 2020, we will continue to focus on both market development and quality of market matters,” said Andrew Weir, Chairman of the Listing Committee.
During the year, the Exchange also consulted the market on the review of the Environmental, Social and Governance (ESG) Reporting Guide and proposed changes to improve the ESG governance and disclosure framework for listed issuers and launched two ESG e-training courses.
To enhance the Exchange’s own decision making structures, the Exchange established a new independent review committee to review all decisions made by the Listing Committee.
For 2020, the Exchange is set to engage the market on a variety of issues, including reviewing the regime for the share schemes of listed issuers, as well as consulting the market on a review of the Exchange’s disciplinary powers and sanctions. The Exchange will also consider requiring online display of documents to widen public access to issuers’ information, to help enhance transparency and facilitate investors to make investment decisions.
“Priorities for 2020 will include reviewing our regime for overseas companies to facilitate such listings in Hong Kong and so further broaden the opportunities available to investors on our markets. We will also be reviewing how to optimise the IPO price discovery process and market infrastructure (such as the IPO settlement cycle) to ensure that Hong Kong remains competitive amongst its peers,” said Bonnie Y Chan, Head of Listing at HKEX.
The Listing Committee, which consists of 27 independent members and the HKEX Chief Executive as an ex-officio member, acts both as an independent administrative decision maker and an advisory body for the Exchange. It oversees the Listing Division, provides policy advice to the Exchange on listing matters, takes decisions of material significance for listing applicants, listed issuers and the individuals concerned, and acts as a review body.
The Listing Committee Report 2019 can be found on the HKEX website. The website also has information on the role and mode of operation of the Listing Committee.
- Through the Consultation Conclusions Paper on a Listing Regime for Companies from Emerging and Innovative Sectors.