10 Oct 2023

THE HONG KONG STOCK EXCHANGE PUBLISHED CONSULTATION PAPER ON GEM LISTING REFORMS

Introduction 

On 26 September 2023, The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) published a consultation paper (the “Consultation Paper”) inviting public feedback on its proposed GEM listing reforms.

The proposed reforms aim at bolstering GEM’s attractiveness while maintaining high standards of investor protection.  The three main proposals include: (1) a new alternative eligibility test for companies in the high-growth segment; (2) removal of quarterly reporting requirements; and (3) a new streamlined transfer mechanism for eligible GEM companies to transfer to the Main Board.  The consultation period would last for six weeks, ending on 6 November 2023.

4 Oct 2023

HKMA PUBLISHED NEW ROADMAP TO PROMOTE FINTECH ADOPTION IN THE FINANCIAL SERVICES SECTOR


 Introduction

On 25 August 2023, a new Fintech Promotion Roadmap (the “Roadmap”) was published by the Hong Kong Monetary Authority (“HKMA”).  The Roadmap contains a series of initiatives to be undertaken by the HKMA over the next 12 months to further drive the adoption of Fintech in the financial services industry.

 

Background

 The HKMA unveiled the “Fintech 2025” Strategy (the “Strategy”) on 8 June 2021, aiming to encourage the financial sector to adopt technology comprehensively by 2025, as well as to promote the provision of fair and efficient financial services for the benefit of Hong Kong citizens and the economy.  One of the five key directives suggested under the Strategy was “All banks go Fintech”, which targeted at fostering the adoption of Fintech solutions in Hong Kong’s banking sector.  A core component of the “All banks go Fintech” initiative was a Tech Baseline Assessment that evaluated banks’ current and planned adoption of Fintech.

Building upon the results of the Tech Baseline Assessment published in June 2022, the HKMA identified five key Fintech focus areas including (1) Wealthtech / Investech; (2) Insurtech; (3) Greentech; (4) Artificial Intelligence (“AI”); and (5) Distributed Ledger Technology (“DLT”), recognising the potential for further growth in these areas.