Listing on the Hong Kong Stock Exchange
Listing on the Hong Kong Stock ExchangeUpdated on Friday 21st February 2020
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The Hong Kong Stock Exchange
The Hong Kong Stock Exchange (HKEx) is the second largest stock exchange in Asia, after the Tokyo Stock Exchange. It is also the sixth largest in the world and many Hong Kong companies as well as Chinese companies and Asian ones are listed here. The Hong Kong Exchanges Clearing is the holding company for the exchange.
The Hong Kong Stock Exchange imposes certain listing requirements for companies and our lawyers in Hong Kong are qualified to assist you during the listing process and with additional assistance afterwards. Listing a company on the stock market should be done in due time. Hong Kong is a good market for listing shares because of its close trading ties with the Chinese market, a good regulatory and legal system and free flow of capital and information.
The listing rules for the Hong Kong Stock Exchange are the main conditions under which a company can be listed on the Exchange. The basic listing requirements include:
- the profit test
- the market cat/revenue test;
- the market cap/revenue/cashflow test.
The profit of the company should be of at least 50 million HK$ in the last three financial years, with at least 20 million recorded in the most recent year. The market cap must have a value of at least 200 million HK$ at the time of the listing. These are all applicable for the Main Board of the Hong Kong Stock Exchange.
The special listing requirements for equities on the Main Board comprises exceptions to the basic listing requirements. They refer to issues like collective investment schemes, investment companies, mineral companies, secondary listings and others.
Another option is to list on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited (GEM). The conditions for listing on this market are less stringent, but mainly in line with those for the Main Board.
Our lawyers in Hong Kong can help you with detailed information about the two markets and how listing on one of the other can benefit your company.
The decision to list a company on the stock exchange
The decision to list a company on the Hong Kong Stock Exchange or on any exchange is an important one and the company should be ready to undertake the specific reporting and disclosure obligations that come after taking this step.
After a company is listed it esters a new phase of its existence and its potential for growth is increases. Our Hong Kong law firm offers special services and counselling for business owners who are considering to list their companies on the Hong Kong Stock Exchange.
You can contact our lawyers in Hong Kong for more details and personalized advice about listing on the Exchange.