Financial News
Written by: Zhang Weilun
2020-11-27 23:21
Last update date: 2020-11-27 23:23
The Hong Kong Stock Exchange (0388) today issued a consultation document on raising the threshold for listing on the Main Board. The document pointed out that it is bluntly concerned about the quality of Main Board listed companies and intends to raise the minimum profitability requirements for Main Board listings.
In the consultation document, the Hong Kong Stock Exchange pointed out that some of them are "small and medium-sized companies in traditional industries" and their valuations are unreasonable.
The Hong Kong Stock Exchange also mentioned that excessively high valuations have also aroused regulatory concerns as to whether the IPO price truly reflects the expected market price.
In some cases, the price discovery process may be affected by the act of providing investors with rebates to subscribe for shares, and suspected improper behavior such as fabricating an artificial shareholder base.
The Hong Kong Stock Exchange pointed out that all these actions violated the basic principle of the Exchange’s Listing Rules, that is, the issuance and marketing of securities should be carried out in an orderly manner, and they are not independent to the relevant investors, but to promote Create potential shell companies and use them to sell, manipulate the market or conduct insider trading concerns.
The Hong Kong Stock Exchange proposes to tighten the listing threshold or require a total of 150 million yuan in the three years before listing
Hong Kong Stock Exchange: Expanding the interconnection mechanism. Sci-tech innovation board companies will be included in Shanghai Stock Connect early next year
Hong Kong Stock Exchange