Hong Kong Financial Secretary Paul Chan Mo-po announced in his Budget address on Wednesday a package of measures to boost the appeal of local capital markets amid intensifying global competition. Stakeholders and experts said the enhanced regulatory regime for listed companies, as well as improved market liquidity and efficiency, signal a commitment to building a deep and liquid market, which will reinforce the city’s standing as a world-leading international financial center.
A market consultation on proposed listing rule changes for companies with weighted voting rights, overseas secondary listings, biotechnology and specialist technology firms will be launched in the first quarter. In the first half of the year, regulators will also consult the market on how to implement the much-awaited settlement cycle of T+1.
Carlson Tong Ka-shing, chairman of the Hong Kong Exchange and Clearing Ltd (HKEX) - the city’s stock exchange operator - said the initiatives outlined, spanning primary and secondary market reforms across asset classes, “underscore the Hong Kong Special Administrative Region government’s steadfast commitment to supporting the long-term competitiveness, resilience and global relevance of the SAR’s financial markets”.
Mofiz Chan, chairman of the Hong Kong Securities and Futures Professionals Association, said if the secondary listing process could be further streamlined, and entry thresholds standardized and lowered – for instance, by easing requirements on recognized stock exchanges, compliance track records and market capitalization – it would attract more established large-cap issuers to Hong Kong, strengthening index quality and encouraging global capital inflows.
“Amidst escalating geopolitical tensions and regulatory divergences, a clearer and more actionable secondary listing pathway would help Chinese and international firms already listed in the United States and Europe diversify risks, while cementing the special administrative region’s strategic position as a hub for dual primary listing/secondary listing,” Mofiz Chan said.
“To remain the destination of choice for next-generation enterprises, our listing regime must evolve in lockstep with global business models. The commitment to review the weighted voting rights structure is a proactive move to ensure we capture high-growth innovative listings,” said Rocky Tung, executive director of the Financial Services Development Council.
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In his budget speech, the finance chief also urged the HKEX to review its listing requirements to pave the way for aerospace enterprises to list in Hong Kong, echoing the HKSAR government’s “Finance+” strategy, which aligns closely with the national priorities outlined in the 15th Five-Year Plan (2026-30) period.
A government source said the new listing pathway for aerospace firms is likely to follow a model similar to Chapter 18A and Chapter 18C, which came into effect in 2018 and 2023, respectively, providing specialized, flexible listing frameworks for pre-revenue biotech and high-growth technology companies.
The Budget comes as the financial center regained its coveted crown as the world’s top fundraising venue in 2025 and the average daily trading volume of the benchmark Hang Seng Index hit an all-time high. The SAR welcomed 24 new listings this year with nearly 500 more lining up for their initial public offering in the city, HKEX said on Friday.
Kenny Shui, vice-president of Our Hong Kong Foundation and executive director of the Public Policy Institute, said broadening investor access under the Stock Connect schemes between Hong Kong and mainland exchanges would offer a fresh boost to trading volumes. He proposed cutting the minimum asset requirement for mainland retail investors participating in southbound trading to 250,000 yuan ($36,315) from the current 500,000 yuan, subject to appropriate risk controls.
As board lot reforms are on the Budget agenda, Shui highlighted high entry costs facing Hong Kong retail investors. Many blue-chips, including Hang Seng Index constituents, currently require tens of thousands of Hong Kong dollars per board lot. Shui suggested introducing a more standardized lot-size regime, potentially even a “one board lot, one share” model.
