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Hong Kong Exchanges and Clearing: IPO applicants with sanctions risk will be assessed individually
AInvestMonday, Jul 29, 2024 9:00 am ET
1min read

According to the chief executive of the stock exchange, since the reform of the listing rules in 2018, new economy companies have contributed 65% of the capital raised in Hong Kong's stock market, and 65 companies have listed through the 18A chapter. On the other hand, the vice chairman of the IPO Review Committee of the Stock Exchange, Liu Ying, said that the 18C chapter is for specialized technology companies, and if the IPO applicant is subject to sanctions, they need to be assessed on a case-by-case basis. In addition, the Stock Exchange will focus on whether the problems raised previously have been solved when reviewing the IPO enterprises that have withdrawn from the mainland and listed in Hong Kong.

The Stock Exchange also clarified that if the IPO applicant is subject to sanctions that seriously weaken its ability to continue operating, or it indicates that the funds raised will be used to support sanctioned activities, or its listing will pose significant risks to relevant parties or may damage the reputation of the Stock Exchange, the IPO applicant will be deemed unsuitable for listing.

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