Hong Kong exchange amends float rules to strengthen city’s status as global finance hub

Hong Kong Exchanges and Clearing (HKEX) has amended its post-listing public float rules to give companies greater flexibility in managing capital while strengthening market transparency.

The bourse operator will allow listed companies to meet an alternative ongoing public float threshold, requiring at least 10 per cent of issued shares in the listed class and a market value above HK$1 billion (US$128.5 million).

For mainland China-listed firms, or A shares, their Hong Kong shares must represent at least 5 per cent of total issued shares or have a market value of at least HK$1 billion.

The initiatives aimed to provide greater flexibility and efficiency in transactions such as share repurchases, the HKEX said in an announcement on Wednesday after a two-month consultation that received 43 responses. The new requirements would take effect on January 1, 2026.

Currently, issuers must ensure at least 25 per cent of their issued shares are held by the public, though HKEX may accept a lower float of 15 per cent to 25 per cent for companies with an expected market capitalisation above HK$10 billion at listing.

The reforms were expected to boost market liquidity and attract more high-quality companies, reinforcing the overall competitiveness of the capital markets in Hong Kong, which hopes to reclaim the title of world’s largest market for new listings, according to market participants.