Hong Kong Exchanges and Clearing (HKG:0388) proposed easing listing rules to give companies greater flexibility in corporate transactions while maintaining investor safeguards, according to a Monday press release.
The proposals would raise the threshold for a major transaction to 50% from 25%, while deals between 25% and 50% would require enhanced disclosure but no shareholder approval.
HKEX also plans to remove the very significant acquisition and disposal classifications.
The Exchange proposed raising the threshold for a connected subsidiary to 30% from 10% and allowing certain continuing connected transaction caps to be expressed as a percentage of revenue or other financial measures.
For spin-offs, eligible companies meeting specified size and business criteria could use a self-assessment route without prior HKEX approval.
The proposals would also remove the assured entitlement requirement and shorten the spin-off application moratorium from three years to one year.
The consultation closes Nov. 30.