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Reporter Huang Wanyin, editor Dong Xingsheng

On August 23, the Hong Kong Securities and Futures Commission and the Hong Kong Stock Exchange announced short-term changes to the main board listing rules. The first is to lower the minimum market value of special technology companies when they go public, and the second is to modify the independent third-party investment regulations for SPAC (special purpose acquisition company) to conduct SPAC mergers and acquisitions transactions. All changes will take effect on September 1, 2024.

Specifically, the market capitalization threshold for special technology companies at the time of listing will be lowered by 33% or 20%. For commercialized companies, the threshold will be reduced from HK$6 billion to HK$4 billion; for non-commercialized companies, the threshold will be reduced from HK$10 billion to HK$8 billion. Among them, commercialized companies refer to special technology companies with revenue of at least HK$250 million (commercialization revenue threshold) in the most recent audited fiscal year, and non-commercialized companies refer to special technology companies that do not meet the commercialization revenue threshold at the time of listing.

HKEX's Head of Listing, Ms. Wu Jiexuan, said that HKEX is committed to continuously reviewing and improving the listing mechanism to ensure that it can keep pace with the times, increase the attractiveness and competitiveness of Hong Kong's capital market, and further enhance the flexibility and vitality of the listing framework with the experience gained in handling listing applications and related transactions. These amendments will provide issuers and investors with greater flexibility and clarity while maintaining strict regulatory standards.

This amendment comes less than a year and a half after the HKEX officially introduced the Special Technology Company Mechanism under Chapter 18C. In October 2022, the HKEX released a consultation document on the "Special Technology Company Listing Regime", and in March 2023, it released a consultation summary on the "Special Technology Company Listing Regime", deciding to add a new chapter (Chapter 18C) to the "Securities Listing Rules of the Stock Exchange of Hong Kong Limited" to lower the listing threshold for special technology companies, so that emerging technology companies with development and investment potential but not yet meeting the current Hong Kong main board listing requirements can go public in Hong Kong.