HONG KONG, April 24 (Xinhua) -- Hong Kong Exchange on Tuesday announced new bourse rules to allow companies with dual-class shareholding structures and biotech firms with no revenue to apply for listing.
The proposed new rules to broaden Hong Kong's listing regime will take effect next Monday, according to the Stock Exchange of Hong Kong Limited, a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX).
"After a remarkable four-year journey of careful deliberation, HKEX's new listing regime is finally open for business. We are now at the dawn of an exciting new era for Hong Kong's capital markets," said HKEX Chief Executive Charles Li.
As part of the reforms, the exchange is adding three new chapters in the Main Board Listing Rules and made consequential changes to the current rules to permit listings of biotech issuers that do not meet any of the Main Board financial eligibility tests; permit listings of companies with weighted voting right structures; and establish a new concessionary secondary listing route companies that wish to secondary list in Hong Kong.
The exchange received a total of 283 responses to the consultation paper from a broad range of respondents representing all stakeholders.
"The consultation solicited market feedback on what we consider to be the best way forward to meet the competitive demand in the market whilst maintaining our high standards of investor protection, and it was well supported by the market,"said David Graham, HKEX's Chief Regulatory Officer and Head of Listing.
Given the specialised nature of the biotech sector, the exchange is in the process of forming a biotech advisory panel consisting of industry experts to advise and assist the exchange in its review of listing applications from biotech firms applying under the new regime.
The exchange plans to launch a separate consultation by July 31 on this matter.
