The Hong Kong Stock Exchange (HKEx) has announced that it will be relaxing its listing rules for specialist technology companies and DeSPAC transactions. This move is aimed at attracting more high-growth technology companies to list on the exchange, as well as encouraging more DeSPAC (Special Purpose Acquisition Company) transactions.
Under the new rules, specialist technology companies will be allowed to list on the HKEx even if they do not meet the profitability requirement. Instead, they will be required to demonstrate that they have a track record of successful operations and a strong business model. This change is expected to make it easier for technology companies to access the capital they need to grow and expand.
In addition, the HKEx will also be making changes to its rules for DeSPAC transactions. DeSPAC transactions involve a process where a private company merges with a publicly traded SPAC to become publicly listed. The HKEx will be simplifying the process for these transactions, making it easier for companies to list on the exchange through this method.
The relaxation of listing rules for specialist technology companies and DeSPAC transactions is seen as a positive move for the HKEx, as it will help the exchange attract more high-growth companies and increase its competitiveness in the global market. This move is also part of a broader trend towards making it easier for technology companies to access capital and go public.
Overall, the HKEx’s decision to relax its listing rules for specialist technology companies and DeSPAC transactions is expected to have a positive impact on the exchange and the technology industry as a whole. It will provide more opportunities for technology companies to raise capital and grow their businesses, while also helping the HKEx attract more high-quality listings.
Source
Photo credit news.google.com