The HKEX profit requirement proposals – consultation on the Main Board profit requirement
The webinar will cover the following aspects of the Consultation Paper:
INTRODUCTION TO CHAPTER 8 OF THE HKEX LISTING RULES AND THE PROPOSED CHANGES
- Introduction and overview of the financial tests in Chapter 8 of the HKEX Listing Rules
- The current HKEX Profit Requirement
- The proposed changes to the HKEX Profit Requirement (Option 1 and 2)
TEMPORARY CONDITIONAL RELIEF AND THE TRANSITIONAL ARRANGEMENTS
- Overview of the temporary relief available if the Proposed Changes are adopted
- The conditions that a listing applicant must meet to be considered for the temporary relief
- The transitional arrangements and the time line proposed by the HKEX
THE ROLE OF THE SFC
- The authority of the HKEX to amend the HKEX Listing Rules
- An overview of the role of the Securities and Futures Commission to approve amendments to the HKEX Listing Rules
THE RATIONALE FOR THE PROPOSED CHANGES
- Why the HKEX wishes to increase the HKEX Profit Requirement
- The misalignment of the HKEX Profit requirement and the increased market capitalisation requirement
- Inflated valuations and the relatively high P/E Ratios of the Small Cap Issuers
JURISDICTIONAL COMPARISON
- Comparison between the HKEX, the New York Stock Exchange (NYSE) and the NASDAQ (Global Select Market) (NASDAQ)
- HKEX Profit Requirement versus the NYSE and NASDAQ earnings requirement
ANALYSIS OF THE PROPOSED CHANGES
- An analysis of the HKEX Profit Requirement applicants between 2016 and 2019 under the Proposed Changes
- The impact on Small Cap Issuers
- The Proposed Changes and the aim to create a greater distinction between GEM listings and Main Board listings
- What do the Proposed Changes mean for Spin Offs?
You can watch the webinar by following the link.
