A Complete Guide to Listing on the Hong Kong Stock Exchange: In-Depth Breakdown of Main Board and GEM Listing Requirements

TL;DR: HKEX operates two main listing platforms—the Main Board and GEM—each with different financial eligibility thresholds. The Main Board requires at least a three-year trading record and satisfaction of one of three tests (profit, market capitalization, or cash flow). GEM targets small and mid-sized enterprises with lower entry thresholds but imposes cash flow requirements. Understanding the differences helps investors assess an IPO’s market positioning and risk profile.

Hong Kong is one of the world’s leading financial centers. Hong Kong Exchanges and Clearing Limited (HKEX) attracts a large number of companies each year to conduct initial public offerings (IPOs). For investors, understanding HKEX listing requirements is not merely a corporate matter—it is a crucial foundation for judging IPO quality and evaluating an issuer’s background. Whether you are considering subscribing to an IPO or seeking a deeper understanding of how the Hong Kong stock market operates, mastering the listing rules can help you make more informed investment decisions.

Hong Kong Stock Exchange: The Main Listing Platforms

HKEX’s securities market comprises two primary trading platforms: the Main Board and GEM (Growth Enterprise Market). They are designed for companies of different sizes and stages of development and serve different investor segments.

The Main Board is intended for companies with more mature financial profiles that can meet higher regulatory standards. Listed issuers include large corporate groups, banks, property developers, technology companies, and healthcare service providers—this is the core Hong Kong market most investors are familiar with. GEM, launched in 1999, was created to provide fundraising opportunities for small and mid-sized enterprises with growth potential. Its listing threshold is relatively lower, and its stock codes generally start with the digit “8,” making them easy to identify.

Note: Companies whose stock code begins with “8” are listed on GEM. Before investing, investors should pay attention to the differences in scale and financial requirements compared with Main Board issuers.

Main Board Listing Requirements: Three Key Financial Tests

To list on the Main Board, an applicant must have a trading record of at least three financial years and satisfy one of the following three financial tests.

1. Profit Test

This is the most common listing route. Applicants must meet all of the following criteria:

• Profit attributable to shareholders of not less than HKD 35 million for the most recent financial year before listing
• Aggregate profit attributable to shareholders of not less than HKD 45 million for the two preceding financial years
• That is, total aggregate profit over the three years must be at least HKD 80 million
• Market capitalization at the time of listing of not less than HKD 500 million

This test is suitable for mature companies with a track record of sustainable profitability.

2. Market Capitalization and Revenue Test

Companies with substantial revenue scale but a shorter profit track record may choose this route:

• Market capitalization at the time of listing of not less than HKD 4 billion
• Revenue of not less than HKD 500 million for the most recent financial year

3. Market Capitalization, Revenue, and Cash Flow Test

Companies with stable operating cash flows may choose this route:

• Market capitalization at the time of listing of not less than HKD 2 billion
• Revenue of not less than HKD 500 million for the most recent financial year
• Aggregate positive cash flow from operating activities of not less than HKD 100 million over the three preceding financial years

Important: The financial figures above are based on HKEX’s official Listing Rules (Main Board Listing Rules). Companies should consult professional advisers based on their specific circumstances.

Other Main Board Listing Conditions

In addition to the financial tests, Main Board issuers must also meet the following requirements:

• Management continuity: In the most recent year prior to the application, there must be no material change in the controlling shareholder(s) and management
• Public float: At least 25% of shares must be held by the public at listing (where market capitalization exceeds HKD 10 billion, HKEX may, at its discretion, reduce the minimum to 15%)
• Minimum number of shareholders: At least 300 shareholders at listing
• Corporate governance: The board must have at least three independent non-executive directors (INEDs), and INEDs must comprise not less than one-third of the board

GEM Listing Requirements: An Alternative Route for SMEs

GEM has a lower listing threshold than the Main Board and primarily targets smaller companies or those in a high-growth stage. It has no minimum profit requirement, but it imposes specific cash flow requirements.

GEM Financial Requirements

• Trading record: An active business record of at least two financial years
• Cash flow: Aggregate net cash inflow from operating activities of not less than HKD 30 million over the two financial years preceding listing
• Market capitalization: Not less than HKD 150 million at the time of listing
• Profit requirement: No minimum profit requirement

GEM Continuing Obligations

GEM has more frequent disclosure requirements than the Main Board:

• Quarterly financial results must be disclosed (the Main Board requires semi-annual reporting)
• Interim and annual reports must include a comparison of actual results against forecast targets
• Lock-up period for substantial shareholders is one year after listing (approximately six months for the Main Board)

Main Board vs GEM: Core Differences Between the Two Markets

Below is a comparison of the key conditions of the two markets:

For investors, understanding the differences between the two boards’ requirements helps in assessing a stock’s background. Main Board issuers generally face higher financial thresholds, while GEM issuers have a lower entry threshold and may therefore carry greater business uncertainty and risk.

New Rules on Corporate Governance and Public Float

HKEX continues to optimize its listing rules to enhance market transparency and investor protection. Under the latest amendments effective from August 4, 2025:

Updates to Public Float Requirements

HKEX introduced the new concept of “Free Float,” requiring listed shares to maintain sufficient liquidity. Key requirements include:

• For a single-class share company (or a Mainland China enterprise with no other listed shares in Hong Kong), where market capitalization does not exceed HKD 6 billion, public float must be maintained at 25%
• Free float must be at least 10% of total issued shares, with a market value of not less than HKD 50 million (Main Board) or HKD 15 million (GEM); or a free-float market value of not less than HKD 600 million

If a company falls below the public float requirement, it must announce the relevant information and its remediation plan. If a Main Board issuer fails to restore compliance within 18 months, it may face delisting risk.

Board Governance Requirements

HKEX’s new rules impose higher standards on board composition and training:

• The maximum tenure of an INED is nine years, after which a three-year cooling-off period is required
• Each INED may hold no more than six directorships in Hong Kong–listed companies
• Newly appointed directors must complete 12 to 24 hours of onboarding training
• The nomination committee must include at least one member of a different gender

HKEX IPO Application Process

According to HKEX official materials, a Hong Kong listing generally goes through the following seven main stages:

1. Appointment of sponsors and advisory team: The company must appoint an experienced sponsor, underwriters, and legal and accounting professionals at least two months in advance
2. Preparation of listing documents: Advisers assist with due diligence and prepare the prospectus, disclosing all information necessary for investors to make informed decisions
3. Submission of application: Submit Form A1 to the Listing Division; after the Exchange confirms receipt, the prospectus is published
4. Review by the Listing Division: A detailed review of the applicant’s listing eligibility, business sustainability, and compliance—typically around 15 business days
5. Listing Committee hearing: The committee considers the application and decides whether to approve the listing
6. Marketing period: Underwriters support investor education and roadshows
7. Commencement of trading: After pricing and allocation are completed, the company is officially listed and trading begins

From the decision to list through to the commencement of trading, the entire process typically takes six months to more than one year, depending on the company’s readiness and market conditions.

Special Listing Routes: Biotech and Technology Companies

In addition to the standard listing routes, HKEX provides dedicated channels for specific industries:

Biotech Companies (Chapter 18A)

Biotech companies without revenue may apply for listing through this route. Key conditions include:

• At least one core product has passed the concept validation stage (e.g., completion of a Phase I clinical trial)
• Market capitalization at the time of listing of not less than HKD 1.5 billion
• The management team must have relevant industry experience

Specialist Technology Companies (Chapter 18C)

For next-generation technology sectors (e.g., artificial intelligence, advanced hardware) with pre-commercialization companies, there are separate listing criteria, and investor protection mechanisms also differ from those applicable to general listing applicants.

Note: Companies listed via special routes have risk characteristics that differ from typical Main Board issuers. Investors should fully understand the relevant disclosure documents and business model before investing.

How Investors Can Make Effective Use of Hong Kong Market Information

As an investor, understanding HKEX listing requirements can help you take a more structured approach when analyzing individual stocks. For example, when you see a GEM-listed stock, you will understand that its financial thresholds differ from those of the Main Board, and you should more carefully assess its cash flow profile and business sustainability.

To keep track of the latest developments in the Hong Kong market, you can follow the latest Hong Kong stock market updates or use stock analysis tools to examine the financial data of individual listed companies in depth. In addition, tracking real-time Hong Kong market movements is also an effective way to stay on top of market trends.

FAQs

What are the main differences between the Main Board and GEM?

The Main Board targets mature large enterprises, with minimum profit or market capitalization requirements and a trading record of more than three years. GEM targets small and mid-sized enterprises, has no minimum profit requirement but requires compliance with cash flow conditions, and only requires a two-year trading record. GEM stock codes generally start with “8”.

What is the minimum market capitalization requirement for listing on HKEX?

The minimum market capitalization requirement for the Main Board is HKD 500 million (under the Profit Test route). If the Market Capitalization and Revenue Test is selected, the requirement is HKD 4 billion or HKD 2 billion (depending on the selected test). The minimum market capitalization requirement for GEM is HKD 150 million.

What are the requirements for public float?

Under HKEX rules, Main Board and GEM issuers must generally have at least 25% of shares held by the public at listing. If a Main Board issuer has a market capitalization exceeding HKD 10 billion, the Exchange may, depending on the circumstances, consider reducing it to not less than 15%. From August 2025, HKEX also introduced the new “Free Float” concept to further ensure market liquidity.

What is a lock-up period?

A lock-up period restricts major shareholders from selling shares for a period after listing. Major shareholders of Main Board issuers generally may not dispose of their holdings within the first six months after listing; for GEM issuers, the lock-up period is one year. This is intended to maintain market stability and protect investors’ interests.

Can biotech companies list in Hong Kong without profits?

Yes. Under Chapter 18A of the HKEX Main Board Listing Rules, pre-profit biotech companies are permitted to apply for listing, subject to specific conditions, including that core products have passed the concept validation stage and that market capitalization at listing is not less than HKD 1.5 billion.

Conclusion

Through its two platforms—the Main Board and GEM—HKEX provides listing and fundraising channels for companies of different sizes, while continuously optimizing its rules to enhance market quality and investor protection. For investors, understanding listing requirements enables a more accurate assessment of an issuer’s background, financial foundation, and potential risks, supporting more well-grounded investment judgments.

As HKEX continues to attract more global companies to list in Hong Kong, the Hong Kong stock market is also becoming increasingly diversified. Whether you participate in IPO subscriptions or hold Hong Kong stocks for the long term, a deep understanding of market rules is an essential foundation for investment decision-making. If you plan to subscribe for IPOs, you can further review practical details such as the IPO subscription process and allotment probability.

Which investment tools to use depends on your investment objectives, risk tolerance, market views, and experience level. Regardless of the tools you choose, you must fully understand how they work, their risk characteristics, and trading rules, and establish a robust risk management plan. You can learn more about investing through Longbridge Academy or download the Longbridge App.