HKEx Consults on Listings of Emerging and Innovative Companies

Julia CharltonPartner, Charltons

HK Stock Exchange Consults on Listings of Emerging and Innovative Companies

Introduction

On 23 February 2018, the Hong Kong Stock Exchange (the “Stock Exchange”) released a Consultation Paper on a Listing Regime for Companies from Emerging and Innovative Sectors (the “Consultation Paper”), setting out proposals to allow the listing of a broader range of companies on the Main Board of the Stock Exchange.

In the Consultation Paper, the Stock Exchange is calling for comments on proposals and amendments to the Listing Rules to:

  1. allow the listing of Biotech Companies that do not satisfy any of the financial eligibility tests under Listing Rule 8.05, including companies that do not have any revenue or profit (proposed new Chapter 18A);
  2. allow high growth and innovative companies with weighted voting rights (“WVR”) structures to list on the Main Board (proposed new Chapter 8A); and
  3. provide a concessionary route to secondary listing on the Main Board for companies primary listed on NYSE, NASDAQ or the “premium listing” segment of LSE’s Main Market (proposed new Chapter 19C).

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