The Stock Exchange of Hong Kong Limited (the Exchange), a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Monday) published its Listing Committee Report for 2022, which includes a review of the committee’s work during the year and an overview of its policy agenda for 2023 and beyond. 

In 2022, the Listing Committee considered 126 listing applications in addition to hearing six review and 29 disciplinary cases. During the year, there were ten “homecoming” listings by Greater China issuers in Hong Kong, six of which chose to dual primary list. The year also saw the listing of five SPACs (raising total funds of $5 billion). In October, the Exchange published a consultation paper on a listing regime for Specialist Technology Companies to facilitate the funding and development across five frontier industries in the region and beyond.

The Exchange continued to support and educate the market on ESG during the year. These efforts included the enhancements to its ESG Academy webpages to highlight the Exchange’s latest ESG regulatory developments. The Exchange also hosted a series of training sessions to help companies better understand how they can incorporate TCFD¹ recommendations into their business strategy and disclosures. In November, the Exchange published its review report on issuers’ ESG disclosure, noting that the enhancements to ESG reporting requirements introduced in 2020² had helped drive positive change in the market.

On corporate governance, the Exchange introduced Listing Rules to end single-gender boards and set numerical targets and timelines for board gender diversity. In April 2022, the Exchange launched a “Board Diversity & Inclusion in Focus” repository providing data on each issuer’s board of directors, by age, gender and year of tenure in order to improve access to information on and transparency around board diversity.

“In 2022, we focused on enhancing the Exchange’s market competitiveness and broadening capital markets access in Hong Kong by welcoming a more diverse range of issuers, whilst also maintaining our market quality and standards,” said Keith Pogson, Chairman of the Listing Committee.

“This year, we look forward to publishing conclusions to our consultation paper on a listing regime for Specialist Technology Companies and the first listings of this new category of companies with high growth potential. We will also continue our review on GEM and initiate our review of the structured products regime (Chapter 15A of the Main Board Listing Rules) and we expect to publish a consultation paper on aligning our standards on climate disclosure with the TCFD recommendations and the ISSB⁴ new standards," Mr Pogson added.

The Listing Committee, which consists of 27 independent members and the HKEX Chief Executive Officer as an ex-officio member, acts both as an independent administrative decision maker and an advisory body for the Exchange. It oversees the Listing Division, provides policy advice to the Exchange on listing matters, takes decisions of material significance for listing applicants, listed issuers and the individuals concerned, and acts as a review body.

The Listing Committee Report 2022 can be found on the HKEX website. The website also has information on the role and mode of operation of the Listing Committee.

Notes:

1. Task Force on Climate-Related Financial Disclosures.
2. As set out in the Exchange's ESG Reporting Guide (ESG Rules) (Appendix 27 of Main Board Listing Rules / Appendix 20 of GEM Listing Rules).
3. A statement of opinion made by the Committee that the director is unsuitable to occupy a position as director or within senior management of the issuer in question or any of its subsidiaries.
4. The International Sustainability Standards Board.