Hong Kong stock exchange issues new listing requirements, plans to implement reforms in February

The stock exchange has set the bar higher with its minimum listing requirements for companies eyeing the main board and will implement most of the proposed reforms for its second board in February, the Hong Kong Exchanges and Clearing (HKEX) announced in a statement on Friday.

Charles Li Xiaojia, chief executive of HKEX, the bourse operator, said in response to a media enquiry, that the change was aimed at improving the quality of listings.

Companies that want to list on the main board must have a minimum market capitalisation of HK$500 million (US$64 million), up from the current level of HK$200 million. The minimum public float value has also been increased to HK$125 million from HK$50 million.

The listing requirements on the second board, Growth Enterprise Market (GEM) have also been raised.

Companies must have a minimum market capitalisation of HK$150 million, up from HK$100 million, while the minimum public float has also been lifted to HK$45 million from HK$30 million.

“Both the main board and GEM minimum market capitalisation will be increased,” Li said.