- Introduction of alternative ongoing public float threshold to provide more flexibility for issuers’ capital management
- New public float reporting obligations for all issuers and additional disclosure requirements for issuers with public float shortfalls to enhance market transparency
- New ongoing public float requirements will come into effect on 1 January 2026
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), published today (Wednesday) conclusions (Consultation Conclusions) to its consultation on ongoing public float requirements1 (Ongoing Public Float Consultation).
The Exchange received 43 non-duplicate responses2 to the Ongoing Public Float Consultation from a broad range of respondents. All the proposals received support from a significant majority of respondents, which the Exchange will now adopt broadly as consulted, with minor modifications.
HKEX Head of Listing, Katherine Ng, said: “We are pleased to have received strong support for our proposals. Enhancing the ongoing public float framework is part of HKEX’s continuous efforts to provide issuers with greater flexibility and efficiency in their capital management, whilst ensuring market transparency and continuous orderly trading. We believe these reforms will complement our earlier initiatives, including the introduction of the treasury share regime and the framework for automatic share buyback programme, further strengthening the vibrancy and attractiveness of our markets.”
Ms Ng added: “At the same time, we are strengthening the reporting obligations on public float levels and adopting targeted, disclosure-based measures in place of trading suspensions. We are also maintaining a strong deterrent with potential delisting as the consequence for prolonged non-compliance. These measures seek to enhance market transparency and facilitate timely restoration of any public float shortfalls. The reform reflects our commitment to investor protection and market integrity, reinforcing Hong Kong’s position as a leading international financial centre.”
The key reforms adopted include:
- An alternative ongoing public float threshold: issuers may choose to comply with an alternative threshold (instead of the percentage threshold prescribed at the time of listing) to maintain a public float representing (a) at least 10 per cent of total issued shares in the listed class and (b) a market value of over HK$1 billion, to have more flexibility to conduct transactions for capital management purposes (e.g. share repurchases);
- A bespoke ongoing public float requirement for A+H issuers: public float of H shares must represent at least 5 per cent of total issued shares in the class to which H shares belong (i.e. A shares and H shares), or have a market value of over HK$1 billion, to ensure a “critical mass” of H shares remains in public hands on an ongoing basis;
- New regular public float reporting requirements for all listed issuers, as well as additional public float disclosure obligations and a restriction from corporate actions for those issuers with public float shortfalls, to enhance transparency and encourage timely restoration of public float; and
- Identifying issuers with a significant public float shortfall3 with reference to their public float market value and percentage. These issuers will be identified by a stock marker (“-PF”) at the end of their stock name, instead of being suspended. Such issuers will be delisted if they fail to restore public float within 18 months (GEM: 12 months).
The Listing Rule amendments to implement the above proposals will come into effect on 1 January 2026 and apply to all listed issuers4. The new requirements will supersede and replace the transitional ongoing public float requirements currently in effect5. A new Guidance Letter (HKEX-GL121-26) on public float requirements will also take effect on the same day to facilitate issuers’ compliance with the new Rule requirements.
The Consultation Conclusions and copies of the respondents’ submissions to the Ongoing Public Float Consultation are available on the HKEX website.
Notes:
- The Exchange published the Conclusions and Further Consultation Paper on Proposals to Optimise IPO Price Discovery and Open Market Requirements (Conclusions and Further Consultation Paper) and launched a public consultation on ongoing public float requirements on 1 August 2025. The two-month consultation period ended on 1 October 2025.
- One response was found to duplicate another response and was not counted for the purpose of the quantitative and qualitative analysis of the responses.
- See paragraphs 231 to 234 of the Consultation Conclusions for the meaning of a “significant public float shortfall.”
- Including issuers listed before 1 January 2026 and those that are to be listed on or after that date. See Section V of Chapter 2 of the Consultation Conclusions for further details.
- To ensure compatibility with the initial public float requirements, the Exchange made transitional consequential amendments to its ongoing public float requirements on 4 August 2025. These transitional arrangements are set out in paragraph 272 and Table 12 of the Conclusions and Further Consultation Paper.
