The company wants to list in Hong Kong. What is the specific listing process? What's the difference between listing in China and listing in China?

The overall process and arrangements for mainland enterprises to go public in Hong Kong are different from those in the Mainland. We divide the listing of the stock exchange into the following three main stages: preparation stage, approval stage and sales stage.

Preparatory cutting

Whether it is mainland IPO or Hong Kong IPO, the participation of professional intermediaries is an indispensable force in the listing plan of enterprises. Intermediary institutions play a decisive role in the success of enterprise listing. The main intermediaries include sponsors, lawyers, professional accountants and appraisers.

After determining the development strategy of listing in Hong Kong, we will first hold an intermediary coordination meeting with sponsors, underwriters, accountants and appraisers to seek the full cooperation of all intermediaries in the listing process.

In the preliminary preparation stage, the sponsor needs to make a quantitative analysis of the company to be listed and evaluate its various aspects. For companies planning to go public on the main board, they must have operating records of not less than three fiscal years, and must meet any of the requirements of profit test, market value/income test and market value/income/cash flow test.

After meeting the requirements of listing in Hong Kong, the most important link of the company in this listing is restructuring. According to the future development direction of the company, the intermediary department will reorganize the company's business, shareholding structure and financial status, making it a new entity that meets the listing requirements and attracts investors.

Examination and approval stage

Above, after the reorganization is completed, the company to be listed may apply to the stock exchange for listing and make an appointment for a tentative hearing date.

At least 25 business days before the hearing date, the company shall submit the listing application form and pay the IPO fee.

The stock exchange will conduct a detailed review of the quality assessment:

Whether 1. meets the listing qualification;

2. Whether it is suitable for listing;

3. Whether the business is sustainable;

4. Comply with the Listing Rules, the Companies Ordinance, the Companies (Liquidation and Miscellaneous Provisions) Ordinance and the Securities and Futures Ordinance;

5. Are there any major disclosure errors or omissions? ...

After the initial acceptance of the listing application for detailed examination, the CSRC or HKEx can still return the application due to incomplete information, and after the application plays a role, it can be re-examined, that is, quick examination:

1. Quick review is applicable to the decision of the application for review sent back by the Listing Department;

2. The applicant and the sponsor have the right to request a review of the decision of the listing department to send back the application and the ruling that the listing committee agrees to the decision.

The review method is double review:

1. The decision sent back by the listing department shall be reviewed by the listing committee;

2. The decision sent back by the listing committee shall be reviewed by the listing (review) committee.

After detailed examination, the time for the stock exchange to issue opinions is as follows:

1. The first round of comments: issued within ten working days after receiving the application;

2. The sponsor's reply must be complete and detailed, otherwise the HKEx will not review it, and the HKEx clearly stipulates that it will not accept the rhetoric of "some information will be updated later";

3. The report of qualified personnel is reviewed by external enterprise consultants selected from the expert group. Although basically all consultants agree to follow the simplified listing procedure, there may still be delays.

Schedule of hearing

There is no preset exact timetable for the time of listing, mainly depending on the time and quality of sponsors' responses to related questions.

For example, suppose there are two rounds of opinions, and the sponsor needs five working days to reply to each round of opinions, and the listing application is expected to be submitted to the listing Committee for hearing about 40 working days after submission. If there is only one round of comments and the sponsor needs 15 working days to reply, he can submit the listing application to the listing Committee for hearing in about 25 working days.

Sales stage

After the hearing was passed, the company and underwriters began a series of publicity work on stock issuance.

In the issuance stage, listed companies will decide a price range according to the market situation at the time of issuance, then invite investors to express their subscription intentions in advance within this price range, and finally decide the final issuance price according to the subscription results. The Hong Kong market is dominated by rights issue and public offering. Finally, the dust settled and the new shares were priced and listed.

The difference with listing in China is that:

Rights as a client

Business records

Management stability

actual controller

Minimum market value

Commercial income

Profit requirement

flow

horizontal competition

The minimum number of public shares held.

Effective time of financial report