Hong Kong Exchanges and Clearing Ltd. (HKEX) has initiated a market consultation to revise post-listing regulations. The proposed changes aim to simplify procedures for major transactions, connected deals, and corporate spin-offs to improve global competitiveness.
The exchange proposes raising the threshold for major transactions from 25% to 50% of a company's market capitalization. This adjustment allows firms to conduct larger deals without triggering stringent disclosure and approval requirements.
The ownership threshold for defining connected subsidiaries will increase from 10% to 30%. Additionally, HKEX plans to eliminate the need for prior exchange approval for qualifying spin-offs and reduce the post-listing moratorium period from three years to one year.
Routine connected asset acquisitions will no longer require shareholder votes under the new proposal. The exchange intends to balance these relaxed rules with stricter disclosure requirements and increased board accountability.
This initiative follows the first phase of reforms published on July 24, which addressed pre-listing requirements. The current consultation period remains open until November 30, allowing market participants to provide feedback.
