HKEX proposes easing listing rules for warrants and CBBCs, lowering entry thresholds

Hong Kong Exchanges and Clearing (0388) has launched a six-week consultation, ending November 11, on proposed amendments to the listing framework for structured products such as warrants and callable bull/bear contracts (CBBCs).

Key proposals include lowering the minimum issue price for derivative warrants from HK$0.25 to HK$0.15 and removing the minimum price requirement entirely for CBBCs. 

The bourse operator also aims to significantly reduce the eligibility threshold for ETFs to serve as underlying assets for structured products. 

The current requirement that the public holding market capitalization of an ETF must be at least HK$4 billion over a 60-day qualifying period would be cut to HK$1 billion.

HKEX said that as market conditions and investor needs continue to evolve, the exchange is committed to ensuring its framework for listing structured products remains aligned with market demand and globally competitive.