On October 18, the Hong Kong Securities and Futures Commission (HK SFC) and Hong Kong Exchanges and Clearing Limited (HKEX) announced a joint statement to optimize the timeline for the approval process of new listings.
The statement highlighted that if a listing application and its documents fully comply with regulations, the HK SFC and the Stock Exchange of Hong Kong Limited (SEHK) will collaborate closely to minimize redundant inquiries. After issuing up to two rounds of regulatory comments, both entities will conduct their assessments. If there are no major regulatory concerns raised within 40 business days, the SEHK will coordinate with the applicant and the sponsors to finalize the listing document disclosures, allowing the application to proceed to a listing committee hearing. Applicants can expect to respond to regulatory comments within approximately 60 business days and aim to complete the application process within a six-month period.
Additionally, the statement noted that eligible A-share companies seeking to list in Hong Kong will benefit from a streamlined approval timeline, provided they have a market capitalization of at least HKD 10 billion and have adhered to relevant A-share listing laws and regulations for the two full financial years prior to submitting their application. For applications that meet these criteria, both regulatory bodies will issue one round of comments and complete their assessments within 30 business days.
Moreover, if either the HK SFC or the SEHK identifies significant regulatory concerns regarding the listing application, or if there are notable new developments from the applicant, or if the applicant fails to adequately address regulatory comments, the two organizations will actively engage with the applicant and sponsor to clarify these concerns. This may extend the overall time required for the application process.
On the same day, all three major indices in the Hong Kong stock market showed significant increases. The Hang Seng Index rose by 3.61% or 725.01 points, reaching 20,804.11 points, with total market turnover hitting HKD 259.06 billion. The Hang Seng Tech Index climbed by 5.77%, gaining 251.08 points to close at 4,600.85 points, while the China Enterprises Index increased by 4.07%, up 292.51 points, to finish at 7,471.95 points.
In an interview with China News Service, analyst Ye Zeheng from the Industrial and Commercial Bank of China (Asia) Securities Department suggested that investors pay attention to mainland brokerage stocks. He noted that after recent pullbacks, the previously overbought conditions have significantly improved. Additionally, the mainland stock market has recorded over RMB 1 trillion in turnover for 13 consecutive trading days, which provides support for the business of mainland brokerages.
