On Friday, the Hong Kong Stock Exchange (HKEX) announced new listing rules for specialist technology companies, lowering the revenue threshold.
Hong Kong Exchanges and Clearing Ltd (0388. HK), the market operator, said it would accept applications in frontier areas such as new energy, robots, semiconductors, quantum computing, autonomous driving, artificial intelligence, and novel food and agricultural technology.
“The new economy sector is fast transforming the manner in which we live and work, and this new path to market will help some of the most inventive and progressive enterprises of the future,” HKEX CEO Nicolas Aguzin said.
The final rules, effective March 31, lower thresholds for hard-tech companies to sell city shares.
According to the guidelines, a commercialized firm should have at least HK$6 billion ($764.38 million) in market capitalization, lower than HK$8 billion suggested in a consultation last October.
A firm must have at least HK$250 million in revenue for its most recent audited financial year, down from HK$500 million.
Instead of HK$15 billion, a pre-commercial company’s market value should be HK$10 billion.
These rules aim to keep Hong Kong’s capital markets attractive despite geopolitical tensions.
The new regime is friendlier and more attractive to U.S.-listed Chinese firms seeking to float shares elsewhere amid political uncertainties, which helps them “mitigate potential risks associated with scrutiny from a single stock exchange,” China Renaissance Securities (Hong Kong) Chief Strategist Melody Lai said in a note.
Comment Template