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Hong Kong Cuts the Rev Level and Introduces New Standards for Specialists Tech Firm Listing.

The Hong Kong Stock Exchange announced on Friday that it had put together revised listing standards for specialised technology organisations, adopting a less lucrative revenue threshold than initially proposed.
The proprietors of the market, a section of Hong Kong Exchanges, mentioned that it would welcome applications from organisations working in revolutionary sectors such as robotics, new energy, quantum computing, artificial intelligence, semiconductors, agriculture, and advanced food technologies.
HKEX Head Nicolas Aguzin mentioned, “ The latest economy sector is promptly changing, our work style and living style, and this new method of marketing will help some of the most cutting edge and innovative organisations in the future.”
However, the laws created to make this convenient for hard tech organisations to sell stock in the city and commencing on March 31 permit the lower standards mentioned in the initial purpose.
The law and regulations state that a commercialised organisation must have a market valuation of not lower than HK$6bn, lower than the HK$8 bn specified during a consultation last October.
Compared to the latest criterion of HK$500m, however, an organisation like that must have a turnover of at least HK$250M, that is, for the latest evaluated financial year.
In addition, for an organisation that is pre-commercial, the company’s market value should not be lower than HK$10bn, in contrast with HK$15bn.
These laws are meant to keep the Capital market in Hong Kong Competitive instead of ongoing geopolitical problems.
China Renaissance Security Chief Strategies Melody Lai mentioned in a note that the recent administration is more appealing and more accommodating to U.S preferred Chinese companies and those who seek to sell their shares to someone else due to political instability, helping them to “ mitigate potential risks related with the evolution from a single stock exchange.”
In the last year of evolution, HKEX collected almost $7.8 bn from IPOs; however, among the top sixth largest revenue collected in 2021.

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