Financial News
Written by: Zhang Weilun
2020-11-27 21:28
Last update date: 2020-11-27 21:34
The Hong Kong Stock Exchange (0388) conducted a two-month consultation on raising the profit threshold for listed companies on the main board. One of the suggestions was to increase the total profit recorded in the three years before listing to 50 million yuan, which is significantly increased to 150 million yuan.
The Hong Kong Stock Exchange pointed out that the minimum profit requirement of Main Board Rule 8.05(1)(a) has not been adjusted since its introduction in 1994. At the same time, the minimum market value of Main Board Rule 8.09(2) since 2018 has increased from 200 million yuan After the increase to 500 million yuan, it was noticed that some issuers that only met the minimum requirements for profitability but had a high market value increased their listing applications.
The Hong Kong Stock Exchange believes that the profitability requirements are inconsistent with the revised market value requirements, causing regulatory concerns about the quality of companies applying for main board listings. Therefore, it is recommended to increase the profitability requirements by 150% in 2018 according to the price-earnings requirements, or according to the Hang Seng Index The approximate increase in closing points (from 1994 to 2019) is increased by 200%.
The public can submit comments before February 1 next year
The two plans proposed by the Hong Kong Stock Exchange are as follows: The first plan is to increase the minimum profit requirement by 1.5 times. The profit requirement for the most recent fiscal year will be increased to 50 million yuan, and the requirement for the first two years will be increased to 75 million yuan.
Another plan is to double the minimum profit requirement. The profit requirement for the most recent fiscal year was increased to 60 million yuan, and the requirement for the first two years was increased to 90 million yuan.
The Hong Kong Stock Exchange pointed out that if the proposal to increase the profitability requirements is finally implemented, considering the impact of this proposal on companies that have planned to apply for listing on the Main Board under the current profitability requirements, a transitional arrangement will be introduced.
In addition, the Stock Exchange will also introduce conditional temporary allowances for the increased profitability requirements, so that high-quality companies whose financial performance is temporarily affected by the new crown pneumonia epidemic and the economic downturn can still be listed.
The consultation lasts for 2 months, and the public can submit comments on or before February 1, 2021 (Monday).
Hong Kong Stock Exchange
