HKEX responds to market concerns about the new round of listing mechanism reforms: lowering the threshold for different share classes will not reduce the quality of listed companies

Hong Kong Exchanges and Clearing is launching a new round of reforms to the listing mechanism.
On March 13, the wholly owned subsidiary of HKEX, the Stock Exchange of Hong Kong, issued a consultation document seeking market opinions on a series of proposals aimed at enhancing the competitiveness of Hong Kong’s listing system.
Notably, this reform makes significant breakthroughs on the existing listing mechanism, such as lowering the financial thresholds for companies with different voting rights; increasing the ratio of different voting rights to up to 20:1; expanding the scope of companies allowed to submit listing applications confidentially; and when returning a listing application, disclosing the identities and roles of all professional institutions involved in preparing the application materials.
At a media briefing held on March 13, HKEX Listing Director Wu Jiexuan stated in response to reporters’ questions that the main goal of this listing reform is to further diversify the listing system and enhance its international competitiveness, while also attracting more companies of various types to list in Hong Kong, all while ensuring market quality. (Securities Times)