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HKEx’s consultation conclusions on Main Board Profit Requirement

On 20 May 2021, the Stock Exchange of Hong Kong Limited (the “HKEx”) published conclusions (the “Consultation Conclusions”) to its 27 November 2020 consultation paper (the “Consultation Paper”) proposing to substantially increase the profit requirement(the “Profit Requirement”) for listing on the Main Board, which is expected to have significant impact on listing applications by small-to-medium sized enterprises (the “SMEs”). After considering and balancing the needs and interests of stakeholders and the public at large, HKEx, in consultation with the Securities and Futures Commission (“SFC”), has decided to increase the Profit Requirement by 60%, from an aggregate profit of HK$50 million for the three immediate preceding financial years to HK$80 million (the “Modified Profit Increase”), to be effective on 1 January 2022. Read more…