The webinar will cover the following aspects of the Consultation Paper:

INTRODUCTION TO CHAPTER 8 OF THE HKEX LISTING RULES AND THE PROPOSED CHANGES

• Introduction and overview of the financial tests in Chapter 8 of the HKEX Listing Rules
• The current HKEX Profit Requirement
• The proposed changes to the HKEX Profit Requirement (Option 1 and 2)

TEMPORARY CONDITIONAL RELIEF AND THE TRANSITIONAL ARRANGEMENTS

• Overview of the temporary relief available if the Proposed Changes are adopted
• The conditions that a listing applicant must meet to be considered for the temporary relief
• The transitional arrangements and the time line proposed by the HKEX

THE ROLE OF THE SFC

• The authority of the HKEX to amend the HKEX Listing Rules
• An overview of the role of the Securities and Futures Commission to approve amendments to the HKEX Listing Rules

THE RATIONALE FOR THE PROPOSED CHANGES

• Why the HKEX wishes to increase the HKEX Profit Requirement
• The misalignment of the HKEX Profit requirement and the increased market capitalisation requirement
• Inflated valuations and the relatively high P/E Ratios of the Small Cap Issuers

JURISDICTIONAL COMPARISON

• Comparison between the HKEX, the New York Stock Exchange (NYSE) and the NASDAQ (Global Select Market) (NASDAQ)
• HKEX Profit Requirement versus the NYSE and NASDAQ earnings requirement

ANALYSIS OF THE PROPOSED CHANGES

• An analysis of the HKEX Profit Requirement applicants between 2016 and 2019 under the Proposed Changes
• The impact on Small Cap Issuers
• The Proposed Changes and the aim to create a greater distinction between GEM listings and Main Board listings
• What do the Proposed Changes mean for Spin Offs?

You can watch the webinar by following the link.