The Hong Kong Stock Exchange (HKEX) has proposed significant reforms to enhance the competitiveness of its listed securities market, as outlined in its December 2024 Consultation Paper. Key changes focus on optimizing the IPO price discovery process and refining open market requirements, particularly around public float calculations. These reforms aim to address issues like the inclusion of non-tradable shares in public float metrics, ensuring a more accurate representation of shares available for trading in Hong Kong, especially for PRC issuers with H and A shares.

Additionally, HKEX proposes tiered public float thresholds based on market capitalization, ranging from 25% for companies valued at HK$6 billion or less to as low as 5% for those exceeding HK$70 billion. Other changes include a minimum initial free float requirement, adjustments to cornerstone investor lock-ups, and enhanced disclosure of public float percentages in annual reports. These measures are designed to improve liquidity, flexibility, and transparency, with the consultation period having closed on March 19, 2025.