The Hong Kong Exchange and Clearing Limited (HKEx) has announced a relaxation of its listing rules for specialist technology companies and DeSPAC (special purpose acquisition company) transactions. This move is aimed at attracting more tech companies to list in Hong Kong and boosting the city’s position as a leading international financial center.
The new rules allow companies with weighted voting rights structures to list on HKEx, as long as they meet certain criteria such as having a minimum market capitalization of HK$10 billion and being a pre-revenue company. This change is expected to attract high-growth tech companies that typically have such structures to list in Hong Kong, where they can access the capital and investor base necessary for their growth.
Additionally, HKEx has introduced new regulations for DeSPAC transactions, which are increasingly popular in the US and other markets. These regulations aim to ensure transparency and investor protection in such transactions, which involve a private company merging with a SPAC to go public. The new rules require DeSPAC companies to disclose more information about their operations, financials, and risks to investors, as well as to have certain safeguards in place to protect minority shareholders.
Overall, these changes are seen as a positive development for Hong Kong’s capital markets, as they make the city more attractive to tech companies and investors looking to participate in DeSPAC transactions. By relaxing listing rules for specialist technology companies and enhancing regulations for DeSPAC transactions, HKEx is positioning itself as a competitive and investor-friendly market for innovative and high-growth companies.
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