(News Bulletin 247) – To convince new companies to join its stock market, Hong Kong this week implemented an accelerated procedure to examine IPO files.

The health of the Chinese economy and its stock markets is at the center of attention of the financial markets. So much so that Beijing has increased stimulus plans in recent weeks intended to support the Chinese economy with a view to achieving the growth objective of 5% in 2024.

On Friday, the country’s central bank announced initiatives that could inject up to 800 billion yuan (103 billion euros) into its stock markets.

A dynamic summer

This support measure could also revitalize a recovering IPO market. In Hong Kong, a little tremor can be observed. This place recorded its best week in two years, in terms of IPOs with 1.3 billion dollars raised (1.19 billion euros), according to Reuters which cites data from Dealogic.

And according to Bloomberg Intelligence, capital raised through IPOs increased more than sixfold to HK$42.3 billion ($5 billion) in the third quarter, while average trading volumes of Stocks in Hong Kong have rebounded 21% over the same period.

New measures taken by the Hong Kong market authorities should fuel the flow of new entrants onto the stock market. The Hong Kong Stock Exchange has in fact committed to shortening the review time for an IPO to 100 days compared to a median approval time of 173 working days, reports Bloomberg. The aim is to guarantee a fixed deadline for IPO candidates.

An accelerated procedure

Companies already listed on the mainland market – namely in Shanghai and Shenzhen – will be eligible for this accelerated procedure if they meet several criteria. Only listed companies with a market capitalization of at least 10 billion Hong Kong dollars (1.2 billion euros) and which comply with all laws and regulations for the two full financial years preceding the application for re-listing and until the date of submission of this request will be able to benefit from this new system.

In this scenario, the stock exchange operator will examine this quotation request during a single cycle of less than 30 working days, according to the press release.

This shortened deadline “will bring greater clarity and certainty to the relisting application process, thereby helping potential applicants and their advisors formulate their listing plans,” said Katherine Ng, head of listing at the Stock Exchange. Hong Kong.

“We fully support the initiative to improve registration times, which is in line with our strategic priority to improve the competitiveness and attractiveness of Hong Kong’s capital markets globally,” added Michael Duignan , executive director of the Securities and Futures Commission.

However, this accelerated deadline will not apply to companies whose requests include “significant regulatory concerns” or reservations on the “quality of the preparation of the listing document”, also argues the stock exchange operator.