HKEX: Listing reform aims to attract high-quality companies, market initially supports simplifying the trading unit per lot

The Hong Kong Stock Exchange (00388.HK) is consulting the market on proposals to relax the listing requirements for "dual-class shares." During a forum, the Chairman of the Hong Kong Stock Exchange, Tang Ka-shing, stated that these proposals represent significant reforms and are expected to attract more high-quality companies to list in Hong Kong. The Hong Kong Stock Exchange will play a gatekeeping role to ensure the quality of listed companies.

He also mentioned that the Hong Kong Stock Exchange will implement a series of measures to enhance the efficiency of the Hong Kong stock market, including the recent completion of a consultation on the reform of the number of shares per lot for trading; initial feedback indicates market participants support simplifying the trading unit for each lot of shares. The Hong Kong Stock Exchange will quickly organize the opinions of market participants to implement a final plan that balances market operational characteristics while providing flexibility for listed companies and investors. The next step is also to promote a paperless securities market and lead the market through to the T+1 settlement period.

Tang Ka-shing expressed optimism about the fundraising situation in the stock market for the year, noting that the average daily trading volume has increased by 10% to over HKD 270 billion compared to last year's HKD 248 billion. In the first two months of this year, the fundraising amount in the IPO and refinancing market has reached a quarter of last year's total, with many companies queued to go public. He stated that in light of the tense situation in the Middle East, diversification and spreading investments are urgent priorities, and the Hong Kong Stock Exchange will ensure the effective operation of the stock market and actively promote new measures