The Zhitong Finance App learned that on October 12, the Hong Kong Securities Regulatory Commission issued a consultation summary stating that it will strengthen targeted tools under the “Securities and Futures (Securities Market Listing) Rules” (“Securities Market Listing Rules”) to handle initial public offering cases and post-listing matters, so as to improve the regulatory efficiency and investor protection of the Hong Kong listed market.
Since the market generally supported the proposals to amend the Securities Market Listing Rules during the consultation period, the Securities Regulatory Commission will respond to the respondents' comments, make a number of clarifications and minor amendments to the proposals before implementing them. Depending on the progress of the legislative process, the Securities Regulatory Commission currently anticipates that the revised Securities Market Listing Rules and related amendments to the Securities and Futures Ordinance will take effect in the first quarter of 2027.
The amendments will allow the Securities Regulatory Commission to impose conditions that can continue to be applied after listing to listing applicants, and to apply post-market conditions to listed issuers as an alternative to immediate suspension of transactions, while simplifying the procedure for resuming transactions.
Furthermore, the SFC will introduce a new mechanism for the Securities and Futures Appeals Tribunal to independently review decisions made by the SFC under the Securities Market Listing Rules (including decisions relating to the imposition of conditions, suspension and resumption of trading) to enhance procedural fairness and transparency.
Ms. Choi Fung-yee, Executive Director of the Corporate Finance Department of the Securities Regulatory Commission, said, “The broad support of the market for the proposed optimization measures reflects the joint efforts of all parties to maintain a high-quality and resilient listing market in Hong Kong, which is extremely important for consolidating Hong Kong's position as a leading international financial center. Implementing our balanced and proactive regulatory policy, the relevant optimization measures will provide the Securities Regulatory Commission with more targeted and proportionate tools to respond to emerging risks before they damage the Hong Kong market, thereby maintaining the integrity and stability of the market and supporting the high-quality development of the market.”
The Securities Regulatory Commission will arrange for the publication in the Gazette of an announcement relating to the revision of the “Securities Market Listing Rules” along with the Government's announcement relating to the amendments to Schedule 8 of the Securities and Futures Ordinance. The two announcements will be submitted to the Legislative Council for initial enactment and subsequent review procedures in the near future.