Update No. 132

Amendments to the rules governing the listing of securities (“Listing Rules")
Update No. 132
May 2021
Amendments to the Main Board Listing Rules
We have amended the Main Board Listing Rules to implement the proposals of the (1) “Consultation Conclusions on the Main Board Profit Requirement” and (2) “Consultation Conclusions on the Review of Listing Rules Relating to Disciplinary Powers and Sanctions” (“Disciplinary Regime Conclusions”) published on 20 May 2021.
We have amended the Main Board Listing Rules to:
1.    Increase the minimum profit requirement under Main Board Listing Rule 8.05(1)(a) from HK$20,000,000 to HK$35,000,000 in the most recent financial year, and from HK$30,000,000 to HK$45,000,000 in aggregate in the two preceding financial years (“Revised Profit Requirement”); and
2.    Reflect the changes resulting from the Disciplinary Regime Conclusions, the key changes include:
(i)    Amending the existing thresholds for public statements against individuals;
(ii)    Introducing public director unsuitability statements against individuals;
(iii)    Enhancing follow-on actions in relation to public statements against individuals;
(iv)    Enhancing disclosure requirements for directors and senior management subject to public sanctions;
(v)    Introducing secondary liability for Main Board Listing Rule breaches;
(vi)    Defining “senior management” within listed issuers and their subsidiaries;
(vii)    Removing existing threshold for denying facilities of the market to listed issuers; and
(viii)    Aligning relevant parties under the Main Board and GEM Listing Rules and other housekeeping amendments.
Coming into effect
The amendments will come into effect on the following dates:
1.    3 July 2021 – for the revised Main Board Listing Rules relating to the Disciplinary Consultation Conclusions; and
2.    1 January 2022 – for the Revised Profit Requirement.
Please click HERE to see the respective amendments to the Main Board Listing Rules.