Hong Kong Exchanges and Clearing (0388) has published a consultation paper on proposals to refine the post-listing requirements governing notifiable transactions, connected transactions and spin-off transactions to enhance the competitiveness of the listing framework.
The bourse operator is seeking market feedback on suggestions that include scrapping the exchange’s prior approval requirement for spin-offs and shortening the moratorium period for spin-offs to one year after listing from three years.
It also plans to increase the materiality threshold for classifying major transactions that do not involve the provision of financial assistance, securities, or other investment activities from 25 percent to 50 percent and remove transaction classifications of very significant disposal and very significant acquisition.
HKEX intends to exempt asset acquisitions or leasings in the ordinary and usual course of business from the circular and shareholders' approval requirements, even if they constitute a major transaction. Under the plan, the threshold for a connected subsidiary held by a connected person will be raised from 10 percent to 30 percent of the voting power.
This reform seeks to give issuers greater flexibility and certainty in their corporate transactions, increasing efficiency in terms of costs and time while upholding investor protection through timely, meaningful disclosure and strong board accountability, said HKEX head of listing Katherine Ng Kit-shuen.
The consultation will close on November 30, 2026.
