Hong Kong exchange to accept listing applications under new rules from April 30, chief says

Companies with dual-class shareholding structures and biotech firms with no revenue will be able to apply for listing on the Hong Kong stock exchange from April 30 under new bourse rules, the head of the exchange said on Friday.

Hong Kong Exchanges and Clearing (HKEX) chief executive Charles Li Xiaojia told a forum on Friday that the results of a consultation into reform of the bourse’s listing rules would be announced on April 24, with the new rules “becoming effective the Monday after”.

The exchange has been planning a major overhaul of its listing rules as it tries to catch up with New York and Shanghai and others in the race to be the world’s largest market for initial public offers. It has previously not allowed listings by companies with dual-class share structures, making it less attractive to big technology firms, many of which use such governance forms.

“This will be the largest listing reform in Hong Kong for 25 years,” Li said, noting that companies with different classes of shares often took their listings to the US instead.

“After the reform, it will change the regulatory landscape. I am comfortable Hong Kong will be able to attract these companies to list here,” he said.

When the new rules go into effect, biotech firms that have yet to generate revenue, as well as Chinese technology companies seeking secondary listings in Hong Kong, would also be able to apply for listings, Li said. He has previously said the exchange had set a goal of overtaking the Nasdaq market within five years in terms of the number of listings of mainland Chinese biotechnology firms.