8 May, 2018
On 24 April 2018, The Stock Exchange of Hong Kong Limited (the “Exchange”) published the consultation conclusions and announced the new rules to:
(a) permit listings of companies with weighted voting right (“WVR”) structures;
(b) establish a new concessionary secondary listing route for Greater China and international innovative companies that wish to secondary list in Hong Kong; and (c) permit listings of biotech companies that do not meet any of the Main Board financial eligibility tests.
The new rules broadly follow the proposals set out in the consultation paper published in February 2018 (see our client alert of 5 March 2018), with a few amendments to reflect comments from consultation respondents on certain details.
The new rules have come into effect on 30 April 2018, from which date companies seeking to list under the new rules may submit formal listing applications to the Exchange.
The two client alerts below give you a quick summary of the key points of:
- the new Chapter 8A of the Main Board Listing Rules (as supplemented by the Exchange’s Guidance Letter HKEX-GL93-18) which sets out rules and modifications to existing rules applicable to companies with WVR structures seeking a primary listing in Hong Kong; and
- the new Chapter 19C of the Main Board Listing Rules (as supplemented by the Exchange’s Guidance Letter HKEX-GL94-18) which sets out additional requirements and modifications to existing rules for the new concessionary secondary listing route for issuers primary listed on the New York Stock Exchange LLC, Nasdaq Stock Market or the Main Market of the London Stock Exchange plc (and belonging to the UK Financial Conduct Authority’s “Premium Listing” segment).
(1) “New chapter on listing of innovative companies with weighted voting rights structures in Hong Kong: At a glance”
View full article here.
View PDF here.
(2) “New concessionary secondary listing route for Greater China innovative companies in Hong Kong: At a glance”
View full article here.
View PDF here.
For new rules on listing of biotech companies, please refer to our client alert of 4 May 2018.
For further information, please contact:
Ronny Chow, Partner, Deacons
ronny.chow@deacons.com.hk
