First line: Hong Kong Stock Exchange: 60% increase in profits of Listed Companies in Hong Kong, no less than 80 million in three years

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Luo Fei, author of QQ music news “first line”, from Hong Kong
From January 1, 2022, the threshold for listing in Hong Kong has been raised.
On May 20, the Hong Kong Stock Exchange announced that it would increase the profit requirements of applicants for listing on the main board during the three-year business period, which must meet the requirements, including the profit of not less than HK $35 million in the latest fiscal year and the cumulative profit of not less than HK $45 million in the previous two fiscal years, that is, the cumulative profit of not less than HK $80 million in the three years. The requirement will be implemented on January 1, 2022.
Compared with now, the main board listing threshold implemented by the Hong Kong Stock Exchange has been increased by 60%. The current listing rules of the Hong Kong Stock Exchange require applicants to make a cumulative profit of not less than HK $50 million in the three years before listing, or a profit of not less than HK $20 million in the year before listing, with a market value of HK $500 million.
The consultation of the Hong Kong stock exchange does not include the test of market value and income, only the profit requirement. In other words, there is no change in the revenue and market value test of the companies going to Hong Kong for listing in the future. That is to say, the company’s revenue in the latest year is more than HK $500 million, and its market value is more than HK $4 billion.
Some sponsors of listing in Hong Kong told Tencent News “frontline” that this will have an impact on the IPO of some small companies in Hong Kong, so they have to extend the listing plan to meet the profit requirements of the Hong Kong stock exchange. But for some big companies or Unicorn enterprises, it will not have a practical impact. However, these sponsors also said that the increase in the threshold will not reduce the number of IPOs listed in Hong Kong. After all, there are not many companies listed under the pressure of the listing threshold of the Hong Kong stock exchange.
These optimistic listing sponsors all agree that it is a good thing for the Hong Kong stock exchange to raise the listing threshold and standards, which directly excludes some relatively poor quality companies and small-scale companies from entering the market, and also helps to protect market participants and investors.
Some investment banks specializing in small IPOs told Tencent News “first line” that in fact, the Hong Kong Stock Exchange has been “not welcome” the hearing of small companies in the past few years, and even deliberately delayed the hearing time to reduce the IPO of small companies, although these companies have met the current listing requirements of the Hong Kong stock exchange. In fact, many of the small companies they have contacted give up listing in Hong Kong, or plan to go public after their profits meet higher requirements.