The Hong Kong Exchanges and Clearing (HKEX) will allow high-tech firms with no revenue or profit to list after a listing rule change in March, Christopher Hui, secretary for HKSAR financial services and the treasury, told a Commercial Radio programme on Sunday (Feb. 26).
Companies listing in Hong Kong usually have to report a profit of HK$35 million for the previous year and HK$45 million in aggregate for the preceeding two years, or meet requirements on market capitalisation and revenue.
The move will be conducive to financial integration between Hong Kong and other cities in the Greater Bay Area (GBA), according to a China Media Group (CMG) report.
Meanwhile, the secretary said the Hong Kong government was assisting foreign private equity funds enter the mainland market, by negotiating with authorities in Shenzhen’s Qianhai economic zone.
The secretary said that around 600 private equity funds have filed to register in Hong Kong over the years.
“A lot of legal support and accounting support is needed in the process. So when they set up such entities in Hong Kong, they use a range of our financial and professional services,” he said.
“And secondly, they can invest in the tech firms on the mainland… Those enterprises may be listed in future.”
Against a challenging macroeconomic and geopolitical backdrop, the HKEX is making broad reforms to consolidate its position as an international financial center.
In 2022, the HKEX reported its first annual profit drop in six years, with a 20% decline year-on-year in its net profit.