KPMG China’s Post

Hong Kong Exchanges and Clearing Limited (HKEX) has published its new consultation on optimising IPO price discovery and open market requirements, as well as the conclusions on improvements to the Corporate Governance Code. Read the news and contact Paul Lau for more insights: https://lnkd.in/g24_uNWW | https://lnkd.in/gXHvb5uS “HKEx’s proposals for enhancements to the open market requirements aim to provide greater flexibility for A-share issuers to list in Hong Kong and to ensure their shares have sufficient liquidity for trading in the Hong Kong market.” 香港交易所發佈了有關優化首次公開招股 (IPO) 定價和公開市場的諮詢, 以及有關優化企業管治守則的咨詢總結。閲讀有關詳情並聯絡 Paul Lau 了解更多信息。https://lnkd.in/gacxPW_v | https://lnkd.in/g6mwqCZr “作爲内地與世界各地的超級聯繫人, 香港資本市場對於有意擴大國際投資者群的A股公司極具吸引力。港交所這次對公開市場的優化建議旨在為A股發行人來港上市提供更大靈活度, 並確保他們的股票在香港市場有充足的流動性進行交易。” #HongKongMarket #CapitalMarkets #Regulatory

Hong Kong Exchanges and Clearing Limited (HKEX) has published proposals to optimise IPO price discovery and open market requirements, part of efforts to ensure Hong Kong’s listing mechanism remains attractive and competitive for existing and prospective issuers. https://lnkd.in/gGAmnfaR 

HKEX publishes proposals to review the regulatory framework relating to IPO price discovery and open market requirements. The consultation period lasts for three months until 19 March 2025. “At HKEX, we are committed to maintaining a robust and competitive new listing and ongoing listing framework, underpinning Hong Kong as a global leading capital raising centre. We are delighted to be proposing new requirements to enhance the IPO pricing and offering mechanism, supporting high quality companies from around the world to list and thrive in Hong Kong’s vibrant capital market. As part of our ongoing efforts to ensure that our listing regime is fit for purpose and meets the needs of a constantly evolving market, we are also proposing changes to the open market requirements that will solidify our reputation as an open, transparent and attractive market to issuers and investors around the world.” https://lnkd.in/gacMdg-3 https://lnkd.in/geiZF6F4

Jean Thio spoke recently with South China Morning Post SCMP about what's top of mind for issuers in #HongKong's capital market, and what's ahead for the city's listing pipeline as companies in hard #technology, #manufacturing, #industrials and #artificialintelligence take advantage of the Hong Kong Exchanges and Clearing Limited (HKEX)'s Chapter 18C listing regime. Read more: https://lnkd.in/gMzAmExX #CapitalMarkets #IPO #Listings

HKEX today published a consultation paper proposing to optimize the IPO price discovery and open market requirements (including public float). This initiative seeks market feedback until 19th March 2025. The proposals will revamp the regulatory framework for IPOs, enhancing the attractiveness and competitiveness of the listing mechanism for both existing and prospective issuers. Key highlights include: 💡Optimizing Price Discovery: Enhancing participation from "price setting" investors to minimize discrepancies between the final offer price and actual trading price at launch. 💡Reviewing Open Market Requirements: Ensuring sufficient shares are available for trading at listing while adjusting certain thresholds to encourage broader participation. Link to the Consiltation Paper: https://lnkd.in/gTdA-76h #HKListing #IPO #OpenMarket

EXCERPTS: A staggering 315 Chinese companies have withdrawn their initial public offering (IPO) applications so far this year, with more than 100 pulling out in June alone. The withdrawals followed the release of the National Nine Articles policies, which have led to stricter listing standards on the Shanghai and Shenzhen exchanges since April 30. The new standards require that a company seeking a listing on the main board reports a net profit of at least 100 million yuan ($13.75 million) in the past year, while those seeking listing on the Growth Enterprise Market, known as the GEM, need to show a net profit of 60 million yuan. Facing tougher benchmarks, companies not meeting the criteria have opted to withdraw their application. In addition, increased penalties on brokerages and investment banks have led to stricter internal controls within securities companies, adding to the IPO withdrawals. COMMENT: “It's always darkest before it becomes totally black.” 🤣 In all seriousness, it is part of the process to strategically build quality markets. However, not surprising, no market for pre-revenue, pre-earnings IPOs (e.g. biotech).

HKEX published a consultation paper today seeking market feedback on proposals to optimise IPO price discovery and open market requirements. The proposals aim to enhance requirements and mechanisms to further elevate the competitiveness of the Hong Kong listed securities market, ensuring that our listing mechanism remains attractive for existing and prospective issuers. The consultation window is open for a three-month period, concluding on 19 March 2025. Learn more about the proposals at https://lnkd.in/g24_uNWW 

Last week Pierre Davoust, Olga Jordao and Giorgio Modica represented Euronext at the European Commission’s Roundtables on Consolidation Summit in Brussels. They participated in insightful panels, addressing one of the biggest challenges for a stronger European #CapitalMarkets Union: market fragmentation. Post-Trade consolidation is a key priority for #Euronext, as we aim to address issues across the value chain, to ultimately build a more competitive and unified European capital market. At Euronext Securities, this issue is tackled head-on by promoting consolidation, integration and simplification across our four CSDs in Denmark, Italy, Norway and Portugal, to support all Euronext’s primary and secondary markets. The recent migration of all Euronext’s cash, fixed income, repo and derivatives trading onto a single clearing house, Euronext Clearing, also delivers greater efficiencies, harmonisation and stability for its clients, and paves the way for further innovation and growth.

Reported on Financial Times, Euronext aims to encourage corporate fundraisings by standardizing the listing information and prospectus across seven countries. Euronext owns stock exchanges across the continent, including the main bourses of Paris, Amsterdam, Dublin and Lisbon. New listings and secondary share sales have raised $52.5bn so far this year, a 16 per cent rise on 2023. But US IPOs and share sales have raised $183.6bn, up 62 per cent in the same period, according to Dealogic data. Read more: https://lnkd.in/efCjvJmX #Euronext #Europe #IPO #Equity #finance

The first thing they should do, is to remove the "Trade with Caution" alert whenever the Company share price is up 5%. This is one of the most foolish acts recommended by the "experts" as it disrupted the trading momentum of a stock. There are numerous reasons for changes in share price and SGX is not the wisest entity to judge. Remove it immediately and you will see instant improvement in SGX liquidity. #sgx #straitstimes #BusinessTimes https://lnkd.in/gK8wH6Fs