Hong Kong targets 2026 securities law overhaul to boost Reits, IPOs
Government says it seeks to upgrade its listing regime later this year, boosting the city’s financial hub status and market transparency
Hong Kong will seek to amend its securities laws later this year and upgrade its listing regime in a bid to attract more companies and real estate investment trusts (Reits) to list in the city, strengthening its role as an international financial centre, government and regulatory officials told lawmakers on Monday.
“The law change will enhance market quality and protect the interests of the investing public by encouraging listed companies and listing applicants to make more transparent and accurate disclosure,” Chan told lawmakers at a Legislative Council financial affairs panel meeting on Monday.
“The law change will also ensure the SFC has sufficient tools to address misconduct.”
Under the proposed law change, the SFC would be empowered to withdraw objection notices for listing applicants, eliminating the need to resubmit fresh applications after addressing the concerns raised in those notices.
The amendment would also allow the SFC to impose post-listing conditions on listed companies, including additional disclosure requirements. The proposal would provide issuers with an opportunity to address the concerns identified by the SFC, thereby allowing the listed companies to avoid trading suspension.
The law change also aimed to clarify that the SFC would be able to initiate the process whereby the trading of listed companies can resume.