PwC proposes longer equity trading hours and lower IPO market cap threshold for tech firms

Hong Kong should explore extending equity trading hours and lowering the minimum market capitalization threshold for specialist technology companies' initial public offerings to attract more capital to the city, PricewaterhouseCoopers said in proposals for the city's upcoming policy address and inaugural five-year plan.

It's hard for Hong Kong to adopt 24-hour trading hours in the short term, but the city should consider longer trading sessions or canceling the lunch break, said Charles Lee, vice chair and managing partner at PwC China.

The minimum market capitalization threshold for specialist technology companies that plan to go public in the city should also be lowered from HK$8 billion to HK$2 billion, aiming to facilitate more local innovative firms to raise capital, said Eddie Wong Kam-chin, capital markets leader at PwC Hong Kong.

Besides, Wong suggested expanding the functions of Hong Kong's over-the-counter market, which could not only let delisted firms secure investors but also enable startups to raise funds in the OTC market.

To attract more overseas companies to the Hong Kong market, PwC proposed establishing a streamlined Hong Kong depositary receipt (HDR) approval channel for overseas-listed firms with a market capitalization exceeding HK$10 billion.

It also suggested incorporating HDRs into the Stock Connect to get access to the mainland's capital market.

Additionally, the government should increase the Hong Kong Investment Corporation's investment quota for high-potential enterprises and promote co-investment with private equity funds, Wong said.

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