Below are key takeaways from ISS’ recently released Hong Kong 2021 Proxy Season Preview. The full report is available to institutional subscribers by logging into ProxyExchange then selecting the Governance Exchange and its Report Center tab and to corporate subscribers by logging into Governance Analytics then selecting the Governance Exchange and the Report Center tab.
- New Economy companies pushed Hong Kong’s success in the IPO market: New Economy enterprises and high-profile secondary listings provided stellar results to Hong Kong as a leading IPO market in 2020. The surge in Hong Kong IPOsmade way for a record year and raised HKD 398 billion with new 146 listings. New Economy companies accounted for about 60 percent of the total funds raised in Hong Kong IPOs. Hong Kong Exchanges and Clearing Limited (HKEx) loosely defines New Economy companies as “high growth companies from the emerging or innovative sectors”. This surge is expected to carry forward through 2021.
- HKEx turns to artificial intelligence to modernize review of annual reports: HKEx developed an AI, in collaboration with Beijing Paoding Technology Co. Ltd. to enhance its capability to monitor the compliance of issuers with the Hong Kong Listing Rules and related disclosure requirements in their annual reports.
- Market Quality and Reputation: HKEx has published a consultation paper on the proposal to increase the minimum profit requirement for companies seeking to be listed in the Main Board. The proposal to increase the minimum profit requirement is part of the continuous effort by HKEx to enhance its market quality and reputation.
- HKEx Launches Sustainable and Green Exchange (STAGE): STAGE is intended to serve as an information portal for both issuers and investors to provide guidance on green and sustainable efforts and increase transparency when it comes to green, sustainable, and social investment products. Market participants can access the STAGE Resources Library for case studies, webinars, guidance materials, research papers, and other online resources associated with the sustainable finance market.
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By Danielle Bianca Yalong, Johann Jin Chan, Lorenzo Montecillo