Hong Kong's stock exchange has proposed lowering market value thresholds for companies seeking to use a dual-class share structure. This move aims to boost share sales in the Asian financial hub.
The Stock Exchange of Hong Kong Limited, a unit of Hong Kong Exchanges and Clearing (HKEX), is conducting a broader competitiveness review. Dual-class share structures allow founders to retain significant voting control despite selling shares.
Currently, companies can aim for a market value of HK$40 billion ($5.1 billion) or a HK$10 billion market capitalization plus HK$1 billion in revenue. The new proposal suggests halving the market value threshold to HK$20 billion and lowering the second threshold to HK$6 billion in market cap with HK$600 million in revenue.
The exchange may also expand eligibility to companies with successful new business models, not just novel technology. Additionally, HKEX proposed allowing all new listing applicants to file confidentially, a right now mainly for second listings and biotech/specialist tech firms.
The bourse is seeking market feedback until May 8. Hong Kong was the world's top listing venue in 2025, with fundraising surging 164% to $103 billion, bolstered by mainland Chinese firms.