says that it is not affected in general means that it will not be affected immediately. But as time goes by, we must judge based on the case situation. If the original exemption no longer applies, whether it can be rectified within a reasonable time?”
pic/Visual China
text｜Finance special dispatched Hong Kong reporter Jiao Jian
edited by Su Qi
"If a second listed company really suddenly (being forced to delist, its second listed stock transactions in Hong Kong will generally not be affected, but we will ask it to convert the second listing into a major listing as soon as possible. "
On October 13, Chen Yiting, the listing director of the Hong Kong Exchange (hereinafter referred to as the "Hong Kong Exchange") made such a public statement on a series of related topics such as the forced delisting of the major listed exchanges. In order to attract new economy companies to list in Hong Kong, Hong Kong, China began to revise a series of relevant rules from April 2018, including allowing biotech companies that have not yet made profits to list, opening up stakes and restrictions, and accepting some companies to list in Hong Kong, China.
so-called second listing (Secondary) Listing), also known as "secondary listing", is an option for issuers to list on multiple exchanges. Similar means include "double main listing", that is, the main listing method is adopted in both listing places. These two methods can bring the benefits of expanding the investor group, and the price is to bear more compliance costs after listing.
Under the aforementioned series of backgrounds, Chinese stocks return to Hong Kong stock market has become a relatively popular phenomenon recently, and some Chinese stocks ml1pcs are listed in Hong Kong in the form of a second listing. Because this selection process has a relatively simple process, and the interaction between the two places will not create price differences.
In early 2022, the Hong Kong Stock Exchange began to implement an optimized overseas issuer listing system. In addition to simplifying and unifying shareholder guarantee standards (even if the company is registered in different jurisdictions, the same set of standards must be used), it can also facilitate shares that have been listed on overseas qualifying exchanges to come to Hong Kong for relisting.
"For example, a company has been listed on the US exchange mainly on the US exchange, and then comes to us for the second listing. Considering that this company is mainly regulated by the United States in the first place of listing and has complied with the regulations of its main listed exchanges, we will provide it with some exemptions to the listing rules, that is, it does not have to comply with all our listing rules like the ones listed in the US. ” Chen Yiting analyzed in the audio program of "Hong Kong Stock Exchange Living Room", saying, "If listing is compared to one door, for the company, the main difference between the second listing and the main listing method is not the difficulty of "entering", but the different continuous compliance responsibilities that they bear after entering the door." "
Specifically, companies with second listed companies can enjoy some exemptions from listing rules after listing, such as the issuer of second listed companies can fully exempt some related transaction announcements and shareholder approvals, and the cost of continuous compliance is relatively low.
" A series of requirements are technical. Obtaining these exemptions is only to speed up financing speed and reduce financing costs, and does not involve substantial thresholds. "Chen Weinan, a senior lawyer at Beijing Kangda (Guangzhou) Law Firm, who has sponsored many Hong Kong stock IPO projects in mainland China, analyzed to the "Finance" reporter, "several common points of exemption are 'not a Hong Kong public company'' "Equity disclosure and equity data disclosure'''Accountant report disclosure requirements'''Company News'', etc. "
" Related persons have a relatively rigorous statement about 'normally not affected', which is in line with the consistent sensibility of the Hong Kong Stock Exchange. It is generally not affected, but in fact it means it will not be affected immediately.However, as time goes by, we must judge based on the case situation, whether the rectification can be carried out within a reasonable time when the original exemption no longer applies, and meet the comprehensive requirements of the Stock Exchange's "Listing Rules". "Chen Weinan told the reporter of "Finance", "As for why we don't make a clearer statement, because it depends on the specific circumstances of the case, the Stock Exchange has never commented on individual cases. "
Regarding the arrangements during this transition period, Chen Yiting also pointed out that after converts its listing status, some of the regulatory exemptions it had previously obtained will be invalid and must comply with all Hong Kong listing rules. However, the transition period will generally be given to listed companies. During this transition period, it still enjoys the regulatory exemptions obtained for the second listing. "At the same time, in order to remind investors of risks, we will also require the stock names of these listed companies to be added with a special logo during the transition period, and the logo can be cancelled after it is converted to the main listing. "
" If the second listed companies are really delisted and they no longer receive these exemptions, these companies will have to rectify them one by one to meet these regulatory requirements. For these Chinese companies listed in the United States, they are generally relatively strong. As long as the financial data meets the listing threshold, these regulatory rules will not cause substantial obstacles to them, but will only require additional time and cost. "Chen Weinan pointed out. In addition to the aforementioned statement that "the second listed stock transaction will not be affected" which is a "peace of mind" statement, many people who are concerned about the Hong Kong stock market pointed out that the two positive effects of the Hong Kong stock market in the near future are worth paying attention to: one is that the Hong Kong Stock Exchange is preparing to formulate special listing rules for high-tech companies with " specialized and specialized " for market consultation, and the other is China Securities Regulatory Commission has stated that it will promote the inclusion of the stocks of major listed foreign companies in Hong Kong, China into the " Hong Kong Stock Connect " scope.
"If the stocks of foreign companies listed in Hong Kong are included in the Hong Kong Stock Connect, then Hong Kong will become the only place in the world that can reach thousands of mainland Chinese investors in the world, which will help consolidate Hong Kong's position as an international financial center . "Chen Yiting pointed out.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-