Hong Kong Exchanges and Clearing (HKEX) has revised its public float rules to enhance flexibility and transparency for listed companies. The changes will take effect on January 1, 2026, allowing companies to meet alternative public float thresholds based on market value and issued shares.

The reforms aim to boost market liquidity and attract high-quality companies to Hong Kong’s capital markets, potentially reclaiming the title of the world’s largest market for new listings. Market participants expect increased competitiveness with the new rules designed to support large-cap companies and A+H share listings.

Companies can now adjust their equity structures more efficiently in response to market conditions and strategic priorities. The reforms provide flexibility in capital management, promoting market transparency by requiring regular reporting of public float levels and disclosing any shortfalls.

Listed companies failing to meet public float requirements will be marked with a “-PF” stock marker and face delisting if sufficient public float is not restored within specified timeframes. The amended public float rules aim to strike a balance between compliance, market vitality, and investor protection, strengthening market quality and transparency.

HKEX’s head of listing expects the reforms to complement earlier initiatives, such as the treasury share regime and automatic share buy-back framework. The changes aim to enhance the overall competitiveness of the Hong Kong market by providing issuers with greater flexibility while ensuring orderly processes and transparency.

Read more at Yahoo Finance: Hong Kong exchange amends float rules to strengthen city’s status as global finance hub