A new applicant mining company that does not meet the profit, revenue/cash flow test or market capitalization/turnover test under Rule 8.05 of the Main Board may be listed if it determines, to the satisfaction of the Hong Kong Stock Exchange, its directors and management have at least 5 years of combined experience relevant to the exploration and/or extraction activities of the mining company. (Rule 18.04 of the Main Council). Details of this experience must be included in the applicant`s registration document. The findings indicate that a pre-production company requesting an exemption under section 18.04 of the Main Committee Rules must demonstrate that it is clearly moving towards commercial production. The Hong Kong Stock Exchange estimates that most companies applying for an exemption under Rule 18.04 are at the development stage, although companies in production are not necessarily excluded as they may have subordinated assets that have not yet been developed. However, producing companies must be able to demonstrate a clear path to profitability in order to be listed under Rule 18.04. For primary and secondary listings in Hong Kong, the Hong Kong listing rules provide that if the Hong Kong Stock Exchange considers that the issuer`s constituting jurisdiction does not offer equivalent standards of shareholder protection, it may approve the listing if the issuer amends its instruments of incorporation to ensure equivalent standards of shareholder protection. HKEx originally proposed to require the Compensation Committee to approve share awards (i) to service providers and affiliate participants; (ii) related persons; and (iii) if the Terms differ from the requirements of Chapter 17. The following table summarizes the procedures for applying for a share entry on the main board: A new applicant wishing to list equity securities on the main board must designate one or more sponsors to assist with their application for listing. Only business finance advisors approved by the SFC to perform sponsorship work may act as limited partners. The promoter must be independent of the applicant from the date of submission of the application until the date of registration and must strictly comply with the sponsors` registration rules.

Accordingly, any document relating to a listing proposal by a new applicant will be published without prior review by the Hong Kong Stock Exchange prior to the listing committee meeting to review the application, the Hong Kong Stock Exchange may postpone the schedule of the proposed listing committee meeting by up to one month. An applicant for registration who has not yet started production must indicate in his registration document his intention to continue production with indicative dates and costs. These plans must be supported by a scoping study, which is described as a «preliminary assessment of a mining project, including an assessment of the economic viability of mineral resources. [and] should include projected production schedules and cost estimates based on data to identify resources. «The scoping study shall be supported by the opinion of a qualified person (Principal Counsel rule 18.06). The new rules now allow any foreign company, including issuers from Greater China, to conduct a secondary listing in Hong Kong, whether or not their business is considered «innovative» by HKEx. The listing rules contain restrictions on the sale of securities by controlling shareholders after a company has been re-registered. Any person identified as a controlling shareholder in the Company`s registration document may not: The Listing Division`s decision to return an application for listing on the basis that the application for listing is not «substantially complete» may be reviewed by the Registration Committee.

If the Registration Committee supports the Registration Division`s decision to return the application for registration on the basis that the application for registration is not «substantially complete», the decision of the Registration Committee may be reviewed by the Registration Committee (Review). The Registration (Review) Committee`s decision on the review is final and binding on the applicant and the proponent. The new rules will enter into force on 1 January 2022 and will also apply to companies that have already submitted applications for marketing authorisation before that date (but expect to be registered afterwards). If the issuer has a controlling shareholder or director (other than an independent non-executive director) who has an interest in a company that is competing or is likely to compete with the issuer`s business, the Hong Kong Stock Exchange requires that details of the interest be disclosed in the listing document. The disclosure of the shares of directors of a competing company must continue to be disclosed in the issuer`s annual returns after registration. Each issuer must establish a remuneration committee chaired by an independent non-executive director, composed primarily of independent non-executive directors, specifying the functions approved by the board of directors (rules 3.25 and 3.26). If they do not comply with these requirements, issuers must publish a notice containing the relevant details and reasons. To be eligible for listing on the HKSE Main Board, a company must have a trade balance of at least three fiscal years and meet at least one of the following three financial criteria at the time of listing: The Hong Kong Stock Exchange has published a Country Guide for each acceptable jurisdiction, which provides guidance on how a company incorporated in that jurisdiction can meet shareholder protection standards.

Required. Foreign applicants may avoid having to provide a detailed explanation of compliance with key shareholder protection standards by adopting the rules set out in an applicable country guide. If a country guide for their acceptable jurisdiction is not yet available, the foreign applicant should instead refer to the relevant listing decisions. Following a subsequent market consultation on the WVR beneficiaries of companies conducted in 2020, HKEx concluded that, as a transitional measure, it would allow Greater China issuers that were already listed on a qualified exchange on or before October 30, 2020 and controlled by a WVR beneficiary to be treated as holders for the purposes of listing in Hong Kong. and could thus make a listing on HKEx without changing its WVR agreements. This position has now been formalized in the amended registration rules. In order for these companies to benefit from a dual primary listing, they must: When HKEx introduced its WVR plan in 2018, it required that WVR shares be controlled only by individuals as WVR beneficiaries, who must be directors and key factors in the company`s success. WVR beneficiaries were not allowed (unless the company concerned made a secondary listing). With a focus on innovation in the new economy, HKEX is actively building product diversity in its market.

Many high-growth technology companies have chosen to launch their IPOs or secondary listings in Hong Kong. Their offerings have changed the composition of our market. (i) it is not the role of the Compensation Committee to oversee the operation of stock programs or share awards to employees who are not directors, officers or service providers; and (ii) the proposed change of the Authorising Authority for the assignments of related persons of independent non-executive directors (INEDs) to the Remuneration Committee would weaken the supervisory function, HKEx has therefore decided to amend the relevant proposed requirements as follows. The qualified person`s report must come into force less than 6 months before the date of the registration document and the applicant`s registration document must contain a statement that no significant changes have occurred since the date of the competent person`s report.