On 1 August 2025, the Stock Exchange of Hong Kong Limited (the “Exchange”) published the consultation conclusion on its proposals to optimise IPO price discovery and open market requirements and launched a further consultation on ongoing public float proposals.
The Exchange has adopted most of its proposals with some modifications and clarifications (please refer to our Capital Markets Update Issue 2025-02), which came into effect on 4 August 2025, as summarised as below:
Open Market Requirement
- tiered initial public float requirement
- new initial free float requirement
- relaxed requirements for A+H issuers
IPO Price Discovery
- bookbuilding placing tranche
- public subscription tranche
In response to market feedback on the appropriate ongoing public float requirements, the Exchange is also launching a further consultation on detailed proposals on those requirements. The key proposals are summarised as below:
- revised ongoing public float requirement
- relaxed requirements for A+H issuers
- removal of trading suspensions
- new requirements and consequence for Significant Public Float Shortfall
- enhanced regular public float reporting
The Exchange invites public comments on their proposals until Wednesday, 1 October 2025.
