Listing Decisions related to reasons for rejection and return of new listing applications

Since the implementation of Listing Rules and related guidance on the new sponsor regime in October 2013, the vetting of new listing applications has been more efficient, the time frame for applications presented to the Listing Committee has been shorten, and the applicants that are not eligible or suitable for listing has been identified and rejected more quickly.

To reduce the number of returned applications, to enhance transparency and market understanding of how to interpret and apply the Listing Rule’s eligibility and suitability requirements for new listings and how to decide the returns of new listing applications, The Stock Exchange of Hong Kong Limited (“the Exchange”) recently published two Listing Decisions which highlight the factors in the Exchange’s decisions in:

• rejecting applications from companies which do not meet the eligibility criteria under the Listing Rules and/or are not considered suitable for listing; and
• returning applications where the application proof and/or other documents are not substantially complete under the Listing Rule.

To improve the quality of listing applications, the returned applicant and its sponsor’s names will be published on the website of the Hong Kong Exchanges and Clearing Limited (“the HKEX”). Returned applications cannot be re-submitted within 8 weeks.

The two Listing Decisions are available on the following HKEX website:

http://en-rules.hkex.com.hk/net_file_store/new_rulebooks/l/d/ld100-2016.pdf
http://en-rules.hkex.com.hk/net_file_store/new_rulebooks/l/d/ld101-2016.pdf