3month24Today, the Exchange of Hong Kong Limited's wholly-owned subsidiary, the Hong Kong Exchanges and Clearing Limited (HKEX), announced the launch of a new listing mechanism for technology-specific companies. At the same time, the Main Board Listing Rules (hereinafter referred to as the 'Listing Rules') will be3month31Daily additions18CThe regulations come into effect on the 1st, and companies intending to apply for listing can submit their formal applications from that day onwards.
What is the significance of these new regulations for main board listings? What are the expected impacts on the structure of the Hong Kong stock market and its international status? The allowance for tech companies without revenue or profit to list in Hong Kong has implications for mainland tech companies seeking to go global in Hong Kong.IPO listingWhat are the impacts, and what are the expected benefits and risks? 2018The Hong Kong Exchanges and Clearing Limited has added it to the listing rules18A,8Aand19CThree chapters,5What has been the reform's effectiveness over the past year? What impacts are expected on this new main board regulation reform due to previous reforms? Frost & SullivanFrost & SullivanDr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Securities Daily to discuss the impact of the new regulations on the Hong Kong Stock Exchange.
Securities Daily
Q
What is the significance of these new regulations for main board listings? What impacts are expected on the structure of the Hong Kong stock market and its international status? The allowance for tech companies without revenue or profit to list in Hong Kong has implications for mainland tech companies seeking to go global to Hong KongIPO listingWhat are the impacts, and what are the expected benefits and risks?
Dr. Wang Xin
Global Partner and President, Greater China at Frost & Sullivan
The significance of the new listing rules for the Hong Kong Main Board on the Hong Kong Stock Exchange lies in enabling early-stage technology companies to enter the Hong Kong capital market earlier and raise equity through the public market.
The implementation of these new regulations will help expand investment opportunities in the Hong Kong market, enhance the vitality of the Hong Kong Stock Exchange, increase the variety of listed companies in Hong Kong, make the Hong Kong Stock Exchange more diversified, and further strengthen Hong Kong's competitiveness with other markets such as the United States, Singapore, and the Chinese mainland.
In addition, the Hong Kong Stock Exchange allows technology companies without revenue or profit to go public, which is of great help in promoting the upgrading of the science and technology innovation industry in the Greater Bay Area. However, this also tests the market's ability to withstand risks and investors' stock selection skills.
Q
Some Mainland enterprises have already started preparations to meet18CThe industry requires listing on the Hong Kong stock market. Are your company prepared to serve mainland clients? Which industries are mainly involved? How long does the listing process on the Hong Kong stock market typically take?
Dr. Wang Xin
Global Partner and President, Greater China at Frost & Sullivan
It is expected that new economic sectors such as digital technology, new energy and environmental protection, and advanced hardware manufacturing will be the main beneficiaries of this reform. These industries have high growth potential and investment value. The general process of listing in Hong Kong involves preliminary listing preparation, submission of an application for listing, passing the Hong Kong Stock Exchange's hearing, and market promotion. Depending on the progress of the project, it generally6reach12A month's time.
Frost & Sullivan has made sufficient preparations to serve mainland clients. Our investment and financing business has achieved full industry coverage of the Chinese national economy, and we have extensive experience serving mainland clients in the aforementioned industries. Frost & Sullivan has entered China.25Since 2019, relying on our nearly50The office, utilizing a powerful database and expert database, and applying rich professional knowledge and consulting tools, has helped nearly a thousand companies successfully list on the Hong Kong and overseas stock exchanges. With a global perspective, it assists clients in accelerating their growth pace, helping them achieve growth, innovation, and leading benchmarks within the industry.
Q
2018The Hong Kong Exchanges and Clearing Limited has added it to the listing rules18A,8Aand19CThree chapters,5What has been the reform's effectiveness over the past year? What impacts are expected on this new main board regulation reform due to previous reforms?
Dr. Wang Xin
Global Partner and President, Greater China at Frost & Sullivan
The main board new regulation reform item this time is following2018Annual Main Board Listing Rules of the Hong Kong Stock Exchange18AZhang “Allow biotech companies to go public”, No.18BAfter the 'Special Purpose Acquisition of Companies', the Hong Kong Stock Exchange has once again established a special listing system.
2018The annual listing reform has led to more companies from the healthcare (pharmaceuticals, biotechnology, healthcare equipment, etc.) and information technology (electronic devices, system development, Internet of Things, e-commerce, etc.) sectors going public in Hong Kong. The information technology sector is currently the largest industry on the Hong Kong Stock Exchange market, and currently, healthcare and information technology industries together account for more than one-third of the total market value in the Hong Kong market.
Previous reforms have set a good example for the new main board regulations, helping the Hong Kong Stock Exchange become a financing hub for start-ups. While bringing more trading volume and capital inflows to the exchange, they have further expanded its influence in global markets.
*This interview was published in 'Securities Daily', with reporters Li Wenshan and Mao Yirong. "The HKEX: New listing rules for technology-specific companies will be3month31Effective from today >> (Click "Read Full Article" at the end of the text to read the complete report).
