Hong Kong to lower exchange's minimum float to let more companies join city's IPO bonanza
For smaller companies, the requirement will be adjusted to between 5 per cent and 25 per cent, depending on their market value, HKEX said in a statement on Friday after a three-month consultation period that received 1,253 responses.
'It is crucial that we continue to evolve our listing framework so that it remains globally competitive and fit for purpose, ensuring that we benchmark ourselves favourably against international standards to appeal to the world's next generation of leading companies,' said HKEX's head of listing Katherine Ng
in a statement announcing the exchange's decision.
Katherine Ng, Head of Listing, HKEX. Photo: HKEX
The listing reform is expected to bolster Hong Kong's leading position in the IPO market. Fundraising from new listings surged eightfold in the first half of this year, with 42 firms raising a total of
US$13.5 billion , propelling the stock exchange's main board to the top of global rankings for the first time since 2019, according to data from the London Stock Exchange Group.
The new public float requirement would align Hong Kong more closely with international practices, as the previous threshold was deemed to be too high, said John Lee Chen-kwok, vice-chairman and co-head of Asia coverage at investment bank UBS in Hong Kong.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
an hour ago
- South China Morning Post
China's copper smelters to curtail record output on ore shortage
China's copper smelters could be at a turning point, as a persistent shortage of ore forces them to trim production from record levels – just as the government ramps up its campaign against overcapacity across industries. Research firm Shanghai Metals Market (SMM) projects output this month at 1.168 million tonnes, 0.5 per cent less than its peak in July, according to its monthly survey of smelters. A further drop is forecast for September. As capacity has expanded, Chinese production has hit a succession of record highs in recent months, defying tight feedstock markets and cratering profitability. But that resilience could now be reaching its limits. It also coincides with greater urgency among policymakers to fix the ruinous competition and overproduction driving deflationary pressures in the economy. While still deeply in the red, the spot fees charged by plants to treat copper concentrate have turned higher over the past month, indicating that smelters may have begun to better align their capacity with the availability of ore. A copper and aluminium foil workshop in Huzhou, Zhejiang province. Photo: CFOTO/Future Publishing via Getty Images Some overseas rivals, which lack the state backing enjoyed by many Chinese operators, have already begun to curtail production. A similar move in China would be highly consequential for the market, as its accounts for over half the world's refined metal. Official output figures for July are due for release by the statistics bureau on August 18.
South China Morning Post
an hour ago
- South China Morning Post
Can Hong Kong afford to jump on the mainland Chinese tech bandwagon?
Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@ or filling in this Google form . Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification President Xi Jinping's recent criticism of local governments for blindly pursuing hot industries like artificial intelligence and new energy vehicles should serve as a wake-up call for Hong Kong. The warning highlights the risk of 'involution' or vicious competition, especially if Hong Kong simply takes 'industrial diversification' to mean following mainland trends. In recent years, Hong Kong has promoted innovation and technology, yet a closer examination reveals a concerning sameness. Although the Northern Metropolis and Cyberport appear to focus on diverse areas – life sciences, microelectronics, Web3 – they often mirror similar innovation corridors on the mainland. Xi's question – of whether all provinces in the country have to develop the same few industries – might also be asked of Hong Kong. Given that Hong Kong is spending a lower share of its gross domestic product on R&D and that these resources are spread across multiple fields, the city is less likely to achieve breakthroughs in these areas. In the meantime, as mainland provinces strengthen their industrial chains, Hong Kong's role as a connector may diminish. The Central Urban Work Conference Xi presided over also proposed improving the efficiency of existing capacity and assessing debt risk, ideas that could apply to Hong Kong.
South China Morning Post
2 hours ago
- South China Morning Post
China's youth seek stability over entrepreneurship as economy lags
In a departure from the 'mass entrepreneurship and innovation' encouraged among China's youth in the 2010s, in a new survey the country's Generation Z has defined its life and career ideals around flexibility and financial freedom. 'Freelancer' was the most favoured career for those born between 1995 and 2009, according to a report released on July 25 by Forvis Mazars, an international provider of advisory and consulting services. Based on the preferences of 4,171 respondents, the study presents a new portrait of the values, lifestyles, and careers sought after by 260 million young Chinese. In a ranking of their 'ideal career,' 49 per cent of respondents included 'freelancer'. 'Public sector employee' was the second most common result with 47 per cent, followed by 'technical professional' with 39 per cent, 'corporate employee' with 34 per cent and 'entrepreneur' with 31 per cent. A relatively low position for entrepreneurship indicates its waning appeal among young Chinese, with some saying a laggard economy has diminished the allure of starting a business. 'The economy was poor during the Covid-19 pandemic, and it's even worse now,' said 23-year-old Crystal Pang, a recent graduate with an education degree currently job-hunting in Shenzhen.
