The HKEX Consultation Paper on the Listing Regime for Overseas Issuers
The Stock Exchange of Hong Kong Limited (HKEX) published a potentially far-reaching consultation paper on the Listing Regime for Overseas Issuers1 on 31 March 2021 (the “HKEX Consultation Paper”). The purpose of the HKEX Consultation Paper is to obtain feedback from the market on the HKEX’s proposals to amend the HKEX Listing Rules to streamline the listing regime for overseas listed companies including listed companies which have a “centre of gravity” in Greater China. This newsletter is a brief summary of the proposals which will be expanded on in more detail in subsequent newsletters.
Chapter 19C of the HKEX Listing Rules defines a Greater China Issuer as a Qualifying Issuer which is a company that is listed on either the New York Stock Exchange, NASDAQ, or the premium segment on the Main Market of the London Stock Exchange, with its “centre of gravity” in Greater China. Factors that the HKEX will look at when considering if a company has a centre of gravity in Greater China include (a) whether the company has a listing in Greater China; (b) where the company is incorporated; (c) the history of the company and where it is headquartered; (d) place of central management and location of its business operations and assets; (e) location of the company’s corporate and tax registration; and (f) the nationality and country of residence of the controlling shareholder and management.