On July 24, the Hong Kong Stock Exchange officially released a consultation summary on enhancing the competitiveness of the Hong Kong stock listing mechanism, and the revised Listing Rules took effect immediately.

New Regulatory Highlights: Lowering entry barriers, expanding scope, and protecting privacy

In March this year, the Hong Kong Stock Exchange solicited market feedback and proposed a series of reform proposals aimed at enhancing the competitiveness of Hong Kong stocks. Now, these proposals are officially implemented, with key highlights including:

During this multi-week consultation period, HKEX received a total of 73 responses from various market sectors. Notably, all proposals received broad market support, with many proposals receiving near-unanimous approval.

The Hong Kong Stock Exchange stated that it will fully adopt these recommendations and make minor adjustments to some details to better meet market demands.

| Popularity remains strong for listing in Hong Kong

1. The second phase of reform is already underway

HKEX stated that this is just the beginning, and will later launch a second phase of consultation on "how to further enhance the competitiveness of the listing mechanism." HKEX Listing Supervisor Wu Jiejun emphasized that this reform aims to make the rules for Hong Kong stocks more flexible and up-to-date. Under the premise of ensuring high-level regulation and investor safety, the Hong Kong Stock Exchange hopes to open its doors and attract more types of high-quality companies to go public in response to fierce international competition.

2. Hong Kong IPOs Remain "Hot"

Stimulated by reform dividends, the enthusiasm for listing in Hong Kong remains strong. Data shows that as of the end of June this year, the Hong Kong Stock Exchange still holds 528 main board listing applications in the queue for processing; Additionally, 24 more have already obtained "passes" and are about to ring the bell to go public.

| Relaxation of Dual-Stock Rights for Same-Share Holdings, Making the Return of Chinese Concept Stocks More Convenient

在全球交易所激烈争夺优质上市资源的背景下，港交所主动出击，大幅降低了多项上市门槛，旨在吸引更多优质企业，减少企业流失。

This new regulation has undergone major optimizations in four core areas:

1. The listing threshold for "equal shares, different rights" has been significantly lowered

In the past, companies using a "dual-voting rights" structure had very high thresholds to list on the Hong Kong stock market (market cap ≥ HKD 40 billion, or market cap ≥ HKD 10 billion with annual revenue ≥ HKD 1 billion).

The new regulations directly "halve" the threshold: the market cap requirement is lowered to ≥ HKD 20 billion, or ≥ HKD 6 billion with annual revenue ≥ HKD 600 million.

2. Major expansion of the definition of "innovative industries."

Previously, only "technological innovation" allowed for the convenience of listing with different rights for the same shares. Now, the Hong Kong Stock Exchange has explicitly included "business model innovation" as well. This means that even if it's not a pure tech company, as long as the business model is innovative enough, it still applies. At the same time, the scope of application for biotechnology and specialized technology companies has further expanded.

3. More flexible equity structure adjustments

Previously, it was stipulated that companies must maintain stable control before going public and could not arbitrarily change major shareholders.

The new regulations relax this restriction: as long as the company can prove that although the shareholder structure has changed, the core management team's actual influence over the company has not significantly changed and it still meets the listing requirements. This provides great flexibility for tech companies to restructure or raise funds before going public.

4. The return of Chinese concept stocks and multinational listings are more cost-effective

To facilitate the return of US-listed companies to Hong Kong, the Hong Kong Stock Exchange has given the green light to its financial standards:

Expanded scope: More companies listed in the U.S. (including their subsidiaries) are allowed to directly use US Generally Accepted Accounting Principles (US GAAP) to prepare materials for listing in Hong Kong stocks.

Cancellation of mandatory conversion: If these companies delist from the U.S. in the future, they will no longer be required to switch to Hong Kong or International Accounting Standards.

This change will greatly facilitate multinational group listing operations and effectively reduce compliance costs for enterprises.

| The Hong Kong Stock Exchange fully opens up "secret submissions," with supporting "crackdown" mechanisms for support

The Hong Kong Stock Exchange's listing rules have undergone major optimizations, the most notable being the comprehensive rollout of the "secret submission" system and the upgraded "return mechanism" in accompanying it.

1. All new companies can "submit applications confidentially,"
but only a few specific enterprises (such as biotechnology companies, specialized technology companies, etc.) are eligible to submit applications confidentially before listing. Now, the Hong Kong Stock Exchange has completely lifted restrictions, allowing all newly listed companies to choose to "submit their application secretly."

It should be emphasized that "secret submission of forms" does not mean "full confidentiality." It only allows companies to temporarily withhold their prospectuses at the early stages of regulatory communication and responses to inquiries; once the hearing is passed, companies must still disclose core business data and risk factors to the public.

2. Why do companies need to "submit forms in secret"?
Industry experts point out that the biggest benefits of this mechanism are "leak prevention" and "saving face."

Leak prevention: During the lengthy process of preparing for listing, companies can avoid premature exposure of core secrets such as business plans and client lists, thereby protecting their market competitiveness. Saving face: If the IPO ultimately fails, the company can avoid excessive public scrutiny and reputational pressure.

However, experts also caution that confidentiality does reduce early public oversight of companies to some extent, requiring regulatory agencies to strictly control the review process.

3. Supporting "Strike Hard": Comprehensive Upgrade
of Return Mechanism To alleviate market concerns that "secret submissions" may lead to reduced document quality, the Hong Kong Stock Exchange introduced a strict "return mechanism" (commonly known as "Return Policy").

Full-chain "public execution": If a company's listing application is returned due to incomplete materials, the Hong Kong Stock Exchange will not only publish the sponsor's name but also publicly name all intermediaries involved in preparing the materials (including law firms, accounting firms, industry consultants, etc.).

Must specify the "reason for return": According to the latest market opinions, the Hong Kong Stock Exchange will not only publicly disclose the names and roles of these institutions but also clearly state the specific reasons for the rejection.

This series of measures will greatly strengthen the gatekeeping responsibilities of intermediaries, ensuring that whether submitted confidentially or not, listing application documents must meet extremely high quality standards.

竞泰观点｜港股市场生态重塑，优质“新经济”标的加速回流

港交所大幅下调“同股不同权”门槛并全面放开“秘密递表”，是对纳斯达克等海外交易所的强力反击。这标志着港股市场正加速向具备高成长性的“新经济”企业敞开大门。

随着更多中概股和拥有创新业务模式的企业（如平台经济、新消费等）以更低的成本和更高的隐私保护赴港上市，港股市场的流动性和资产丰富度将迎来实质性重塑。

Focusing on the expansion expectations of the "Hong Kong Stock Connect," it is positioning itself as a highly resilient new economy leader

With the lowering of listing thresholds, Hong Kong stocks will see a wave of IPOs for "new economy" companies in the future. It is recommended that investors focus on high-quality targets that are about to list in Hong Kong and have the potential to be included in the "Stock Connect." Especially those internet platforms, new consumer and specialized technology companies that have achieved profit inflection points under "business model innovation" or have strong cash flow.

Once these companies go public and are included in the Hong Kong Stock Connect, they will directly benefit from the increased pricing power of southbound funds, experiencing significant valuation premiums.

Be alert to compliance risks among intermediaries under the "lenient entry, strict exit" policy

While relaxing the listing threshold, the new regulations have introduced the strictest "return mechanism" in history. This means the review logic for Hong Kong stocks has shifted from "setting up checkpoints in advance" to "strict management during and after the fact." Under the cover of "secret submission," intermediaries such as sponsors, law firms, and accounting firms bear heavier gatekeeping responsibilities.

For investors, when participating in IPO subscriptions or investing in newly listed stocks, it is important to focus on the reputation and historical approval rate of the sponsoring institution. Under the new "lenient entry, strict exit" policy, leading compliant brokers will gain more market share, while lower-tier brokers and intermediaries that frequently "turn back" will face significant reputational and business risks.