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New listing rules likely to attract a dozen applicants in first round, says HKEX chief executive

Charles Li Xiaojia would not confirm if mobile phone maker Xiaomi, as many expect, will be at the front of the listing queue

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Charles Li Xiaojia, chief executive of Hong Kong Exchanges and Clearing, said on Tuesday he expects the initial round of companies to list under the new rules by June and July. Photo: Nora Tam
Enoch Yiu

More than a dozen technology and biotech companies could be part of the first batch to apply for a Hong Kong listing under new rules being introduced from next week, according to Charles Li Xiaojia, chief executive of Hong Kong Exchanges and Clearing (HKEX).

The operator of the Hong Kong stock exchange said on Tuesday that new rules to broaden the listing regime will take effect on Monday, when the exchange will begin accepting formal applications under a system that permits dual-class shares – a structure seen as favourable to technology companies and their founders.

The new regime also opens the door to pre-revenue biotech companies, as well as dual-class shareholding companies already listed in the US, such as Alibaba Group Holding and Baidu.

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“I do not know if companies will submit applications on Monday but I believe they will apply very soon after the new listing rules are effective,” said Li, as he announced the conclusions of a one-month consultation process.

“Many companies indicate they are ready to file a listing application. What they are waiting for is the introduction of the new listing regime.”

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“It will not be in the single digits, more than a dozen companies will apply,” he said.

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