Hong Kong Eases IPO Rules to Extend Listing Boom and Attract Giants

Hong Kong has introduced IPO rule reforms to maintain the momentum of its recent listings boom and strengthen its status as Asia’s top financial hub. Effective this week, the Hong Kong IPO rule reforms include reducing the minimum public float for new listings from 15% to 10%, with further cuts under consultation. These changes are expected to attract large Chinese firms pursuing dual listings. The new rules will also limit retail investor allocations to 35%, down from 50%, thereby shifting more placements to institutional investors to reduce price volatility. The Hong Kong IPO rule reforms come amid a surge in activity, including a record listing by Contemporary Amperex Technology, which helped the city reclaim its global IPO standing.