HKEX(HK:00388) Shang Hai Zheng Quan Bao·2025-08-05 18:16Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has implemented significant reforms to its IPO pricing mechanism for the first time in 27 years, aimed at enhancing flexibility for issuers while protecting public investors' interests [1][4]. Group 1: IPO Pricing Mechanism Reforms - The new regulations include adjustments to the minimum allocation requirements for the book-building portion, reducing the initial proposed allocation from 50% to 40% [1][2]. - The reforms allow for greater participation of institutional investors in the pricing process, which is expected to improve the efficiency of new stock pricing [2]. - The public offering portion's maximum allocation can now be increased to 60% under the new mechanism, providing issuers with more options [2][3]. Group 2: Impact on A+H Companies - The initial public holding requirement for A+H companies has been lowered from 15% to 10%, or a market value of HKD 3 billion, easing the pressure on existing shareholders [4][5]. - This adjustment is seen as beneficial for large companies, as it reduces share dilution pressure and accommodates complex capital management needs [4]. - The changes are expected to attract more leading A-share companies to consider listing in Hong Kong, enhancing market liquidity [4][5]. Group 3: Ongoing Consultations and Future Adjustments - HKEX is also consulting on further optimizations to the public holding requirements for existing listed companies, indicating a flexible approach based on company size and investor demand [5]. - The introduction of tiered public holding requirements based on market capitalization aims to ensure liquidity while accommodating different company profiles [5].