Hong Kong Stock Exchange Launches Major Reform Again: Plans to Relax the Threshold for Dual-Class Shares and Expand Confidential Applications to All New Stocks

The Hong Kong Exchanges and Clearing Limited (HKEX) published a consultation paper on the 13th, seeking views from the market on a series of proposals aimed at enhancing the competitiveness of Hong Kong’s listing regime. The main measures include suggestions to optimize the listing requirements for different classes of weighted voting rights, and to facilitate overseas-listed issuers in coming to list in Hong Kong. Meanwhile, the new rules propose expanding the scope of confidential submission of listing applications to cover all new applicants.

In response to market concerns over whether the expansion of confidential applications would affect the transparency of Hong Kong stocks, Wu Jiezhen, Head of Listing at HKEX, said in her response that transparency would not be harmed. She explained that the secret submission of the listing application form only allows issuers not to immediately publish the application documents to the public at the application stage. Once the company passes the listing hearing, it still must publish the listing documents as soon as possible—namely the Post-Hearing Information Pack (PHIP).

The enhanced rejection mechanism will not only disclose the name of the sponsor whose application was rejected, but will also reveal all professional institutions involved in preparing the materials. It is understood that HKEX’s consultation on reforming the listing regime will last 8 weeks and conclude until May 8, 2026; after collecting and analyzing all feedback, HKEX will determine the final reform plan, as well as the timetable for implementing the plan. (First Financial)