HK SFC Consults on Proposed Amendments to HK Securities and Futures (Stock Market Listing) Rules

The Securities and Futures Commission (SFC) of Hong Kong released a comprehensive SFC Consultation Paper on Proposed Amendments to the Securities and Futures (Stock Market Listing) Rules (SFC Consultation Paper) on 28 March 2025 setting out its proposed amendments to the Securities and Futures (Stock Market Listing) Rules (Chapter 571V of the Laws of Hong Kong) (SMLR). The overarching aims of the amendments are to allow the SFC to intervene early to deal with abusive practices and to improve transparency through stricter disclosure rules for companies applying for listing (HKEX-listing applicants) and companies listed on the Stock Exchange of Hong Kong Limited (the HKEX) (HKEX-listed companies). The SFC sees these amendments as necessary to address gaps and operational restrictions under the SMLR to improve operational efficiency. The main changes include:

• a provision explicitly allowing the SFC to impose ongoing requirements on HKEX-listing applicants after listing so that the SFC can allow the listing application to proceed, subject to a condition that the HKEX-listed company complies with specific obligations after listing;
• a provision expressly allowing the SFC to impose post-listing conditions on HKEX-listed companies as an alternative to suspending trading in their shares;
• streamlining the procedures for the resumption of dealings to shorten trading suspension periods; and
• granting HKEX-listed companies a right to a full merits review by the Securities and Futures Appeals Tribunal (SFAT) of SFC decisions to impose conditions on HKEX-listed companies, suspend trading in their shares or cancel their listing.

According to the Consultation Paper, the proposed amendments target serious misconduct to prevent financial harm. The SFC thus expects these amendments to have minimal impact on HKEX-listed companies that comply with their disclosure obligations.

The cut-off date for responding to the consultation is 23 May 2025. Comments can be submitted online via this link.