Hong Kong Capital Markets Update –Issue 05, August 2025

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 2024-02), which came into effect on 4 August 2025, as summarised as below:

Open Market Requirement

1. tiered initial public float requirement
2. new initial free float requirement
3. relaxed requirements for A+H issuers

IPO Price Discovery

1. bookbuilding placing tranche
2. 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:

1. revised ongoing public float requirement
2. relaxed requirements for A+H issuers
3. removal of trading suspensions
4. new requirements and consequence for Significant Public Float Shortfall
5. enhanced regular public float reporting

The Exchange invites public comments on their proposals until Wednesday, 1 October 2025.