Gate News message, April 17 — The Hong Kong Securities and Futures Professional Association (SFPA) supports lowering the financial qualification thresholds for dual-class share structures, according to SFPA Chairman Chan Chi-wah. The association believes reduced thresholds will attract more quality innovative and new economy companies that may not meet the current 400 billion Hong Kong dollar market capitalization requirement to list in Hong Kong with weighted voting rights structures, enhancing the city’s competitive position as a new economy financing platform.
The SFPA proposes adjusting thresholds to either a 200 billion HKD pure market capitalization test or a 60 billion HKD market capitalization combined with 600 million HKD revenue requirement, maintaining the existing 10% revenue-to-market-cap ratio principle while lowering overall entry barriers. Chan noted that the current 400 billion HKD threshold is too stringent for mid-sized tech companies in expansion phase, pushing them toward Nasdaq listings. Lower thresholds would significantly expand the pipeline of potential listing candidates and attract more unicorn enterprises to Hong Kong.
Chan emphasized that the U.S. market imposes no such limits while the UK has already removed its 20x ratio cap. For top-tier founders, control rights are a core consideration in choosing a listing venue. The SFPA believes that with adequate disclosure in prospectuses and risk factors prominently displayed, investors should be aware of voting structures upon purchase. Dual-class shares would remain an option for select high-quality large-cap companies rather than a standard structure, and combined with innovation sector definitions, external recognition, corporate governance, and ongoing obligations, this conditional relaxation is acceptable for investor protection.
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