The Hong Kong Stock Exchange is the second largest stock exchange in Asia, after the Tokyo Stock Exchange and the sixth largest in the world. Most companies listed here come from mainland China, followed by companies based in Hong Kong and other foreign companies. The Stock exchange is located in Central Victoria City, Hong Kong and was founded in 1891.
The Hong Kong Stock Exchange has two listing boards, one designed for large and established companies that can comply with the profit regulations (the Main Board) and another one, the Growth Enterprise Market board that has lower entry criteria and generally targets emerging companies in Hong Kong.
We invite you to also watch the following video about registration with the Hong Kong Stock Exchange:
Listing on the Hong Kong Stock Exchange
The decision to list a company on the Stock exchange is an important one in any company’s life cycle. It marks a new beginning and the company directors should be well aware of its implications. Once the decision to list the company has been made, the legal entity will have to comply with different and more demanding reporting obligations. Our company incorporation consultants in Hong Kong are able to help you answer the most important questions about your company, questions that will help you decide whether or not the company is ready for listing. We will help you understand all the duties and responsibilities that come with the listing of the company.
Listed companies must be prepared to keep the public and investors informed at all times. Potential investors must be allowed to access enough information about the company in order to be able to make a documented choice for investment. Also, the issue and marketing of securities must be made in an orderly manner.
The Hong Kong Stock Exchange has some basic listing requirements for equities. These include financial requirements, acceptable jurisdictions, accounting standards (for both the listing boards), suitability for listing, operating history and management, minimum market capitalization, public float, spread of shareholders and offering mechanism.
As far as the financial requirements are concerned, those for the Main Board state that a new applicant must have a trading record of at least three financial years and meet other financial criteria such as the profit test. Applicants on the Growth Enterprise Market must also have a trading record including a market cap of at least 100 million HK$ at the time of the listing.
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