The New Hong Kong Backdoor Listing Rules – Impact on Large Scale Equity Fundraisings by Hong Kong Listed Companies and Maintenance of Listing Status
The Stock Exchange of Hong Kong Limited (the Exchange) has issued amendments to the Listing Rules and new guidance letters relating to backdoor listing and continuing listing criteria (together the "New Rules"), which will take effect on 1 October 2019. While the New Rules are meant to address evolving market practices in backdoor listing and to regulate shell activities, they may also affect business expansion or diversification particularly those involving important strategic moves pursued by listed issuers.
We have discussed in Part 1 and Part 2 the implications of the New Rules on listed issuers undertaking acquisition of business/assets, and disposal of a substantial part of their existing business or assets. We now turn to how the New Rules may affect large scale equity fundraisings and maintenance of listing status.
To read Part 1 and Part 2, please refer to the below links:
Part 1 – Impact on Acquisitions by Hong Kong Listed Companies
