HKEx Sees A Lot Of Interest In New Listing Regime

The Chief Executive of the Hong Kong Exchanges and Clearing, Charles Li, has expressed confidence over the market response to a new share structure regime.

Biotech and innovative start-ups will be able to apply for a Hong Kong listing under the new regime from next Monday.

The market operator published its final listing rules on Tuesday – after it released final rules on a weighted-voting rights structure. Small amendments have been made to its original proposal.

Li said a number of new companies may be floated on the market under the new structure this summer.

"There is a large number of companies that had indicated to us that they are ready to file. And that there are pre-IPO and earlier confidential discussions on various issues ... and I think everybody is just waiting for the rules to be published today. I don't want to speculate on the numbers, but I do think we are talking about not single numbers, single-digits numbers, we are talking about numbers that are potentially going into the dozens," Li said.

The local listing rule reform has come less than a month after Beijing announced a system to let qualified foreign-listed innovative companies float on the A-share market.

Li also played down concerns that the so-called Chinese Depository Receipt mechanism will pose a significant threat to Hong Kong.

He said instead, he sees opportunities, even if firms may be attracted to list on the mainland.