The Hong Kong stock exchange eliminated a China-only restriction, changing this news report’s headline and opening paragraph. IPO considerations are ongoing.
On Tuesday, the Hong Kong stock exchange eliminated China-risk-related listing requirements for mainland businesses. The stock market requires foreign firms going public to be transparent. Assessment remains constant. China’s commercial and legal difficulties were removed from the latest listing guidelines. July 21 study validates this.
China’s Securities Regulatory Commission established international stock listing requirements in February. Hong Kong’s Securities and Futures Commission heard public input on proposed reforms. One week after the amendments were suggested. Hong Kong Exchanges and Clearing Ltd. (0388. H.K.) updated its lending criteria on July 21 to reflect current Mainland China legislation. The exchange’s rules summary should have noted the absence of China risk reports.
“The previous rules had different requirements for companies from China, but the recent discussion has aimed to make the requirements equal for all companies based outside the country,” stated an exchange representative in an email. The current consultation tried to standardize standards for all foreign enterprises.
The speaker emphasized that Chinese enterprises must be open like other companies. The exchange states that the required reviews have no rollbacks. The China Securities Regulatory Commission met with local lawyers on July 20. They advised against criticizing China’s policies or economic and legal climate in company listing prospectuses.
The company’s management warned them that the government might not allow IPOs if they didn’t satisfy the criteria. Chinese IPO prospectuses attract global investors. Chinese enterprises often debut in Hong Kong or the U.S.
The U.S. Securities and Exchange Commission requested Chinese firms registered on U.S. stock exchanges to explain how the Chinese government engages in their company and how the 2021 Uyghur products ban affected them earlier this month.
The new Hong Kong listing criteria demand a discussion of essential laws and policies, how politics and the economy function, foreign currency restrictions, exchange rate risk, and other hazards particular to doing business in China. These won’t be needed to provide notice when the regulations change.
China’s new international listing standards opened several Chinese firms to Hong Kong listings by March 31. Few Beijingers can raise finances.