Asia Pacific: Wanted - new secondary listing regime

Author: | Published: 24 Feb 2014

Hong Kong has certainly advertised its advantages as an international listing destination. But Japanese retailer Fast Retailing's listing of Hong Kong Depositary Receipts (HDRs) has highlighted the problems with the HDR regime, and more broadly, its rules for overseas company listings.

Fast Retailing's HDR listing has been heralded as the return of secondary listings in Hong Kong. It is the first since the Securities and Futures Commission (SFC) and Hong Kong Exchange (HKEx) released their Joint Policy Statement (JPS) on the listing of overseas companies in September 2013.

Hong Kong has had a dearth of overseas listings since 2011. The JPS has attempted to streamline the listing process by listing the waivers that HKEx is prepared to grant for each jurisdiction. But it has not articulated any differences in the vetting process for secondary versus primary overseas listings – which is a hurdle for HDR listings. Appendix V of Fast...