On 31 January 2020, the Exchange published a consultation paper seeking market views on a proposal to extend the Exchange’s current WVR regime to permit corporates to benefit from WVR, subject to appropriate safeguards.

The Exchange, after considering the feedback from the respondents, decided not to implement the proposals set out in the consultation at the current stage to give more time for the market to develop a better understanding of Hong Kong’s regulatory approach towards regulating listed companies with WVR structures and their controllers, and for the regulators to monitor the existing WVR regime operates as intended, which will help to inform any future amendments.

The Exchange will additionally treat Greater China Issuers that are (a) controlled by a single corporate WVR beneficiary which is the largest shareholder in terms of shareholders’ votes and at least 30% of votes are under its control and (b) already primary listed on a Qualifying Exchange as at 30 October 2020 in the same manner as the existing Grandfathered Greater China Issuers for the purposes of MBLR Chapter 19C to secondary list in HK.

To normalise the eligibility requirements for Greater China Issuers without WVR structures to secondary list in HK under MBLR Chapter 19C, the Exchange will consult the market and is currently considering whether to (a) revise the minimum market capitalisation requirement to USD400 million (~HKD 3 billion) as set out in the JPS and (b) remove the “innovative company” requirement.