Hong Kong Exchanges & Clearing (HKEX) has set a lower threshold for advanced technology companies, including those in the artificial intelligence (AI) and semiconductor sectors, to list on the exchange.  

The bourse operator said on Friday (Mar 24) that, under new rules, the minimum market capitalisation required to list on the Hong Kong mainboard will be HK$6 billion (S$1.01 billion) for companies in the nearly 20 sectors considered “specialist technology”. This was reduced from the floor of HK$8 billion in an earlier proposal. 

HKEX also reduced the required market capitalisation for pre-commercial firms to list, to at least HK$10 billion from HK$15 billion. The new regime will come into effect from Mar 31. 

“The new economy sector is rapidly changing the way in which we live and work, and this new route to market will support some of the most innovative and progressive companies of the future,” said HKEX chief executive officer Nicolas Aguzin. 

Granting companies with niche technology easier entry into the public market in Hong Kong compliments China’s push to grow its own firms against US dominance. The US is exercising broader restrictions, including limiting sales of AI chips to Chinese clients. 

The eased rules for niche technology firms could also help revive Hong Kong’s initial public offering (IPO) market, which slumped 68 per cent in 2022. The bourse is on the hunt for major IPOs, including the US$1.9 trillion oil giant Saudi Aramco, to strengthen its position as an international finance centre. 

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“Although we received majority support for most of our proposals, we have made some adjustments to the new rules, reflecting market feedback, whilst continuing to ensure that our regulatory intentions remain undiminished,” said HKEX head of listings Katherine Ng. BLOOMBERG