The new rules lower the barrier to raise capital for companies that are already listed in mainland China. Starting Monday, the minimum float of mainland companies in Hong Kong will be set at HK$3 billion (US$386 million), or 10 per cent of their outstanding capital, down from the current 15 per cent.
For smaller companies, the requirement will be adjusted to between 5 per cent and 25 per cent, depending on their market value, HKEX said in a statement on Friday after a three-month consultation period that received 1,253 responses.
The new public float requirement would align Hong Kong more closely with international practices, as the previous threshold was deemed to be too high, said John Lee Chen-kwok, vice-chairman and co-head of Asia coverage at investment bank UBS in Hong Kong.
