IPO process accelerated: Enhanced application timeframes by SFC and SEHK

1. The Enhanced Application Timeframe

The SFC and the SEHK will coordinate their regulatory actions under the Enhanced Application Timeframe. The regulators will remain focused on ensuring that the application materials conform to all applicable requirements and guidelines as set forth in the Securities and Futures (Stock Market Listing) Rules (SMLR), the Securities and Futures Ordinance (SFO), and the SEHK’s Listing Rules (Listing Rules).

(a) Fully Compliant Applications

When an applicant submits an IPO application that fully meets all requirements set out above (Fully Compliant Application), the SFC and SEHK will each aim to complete the assessment on material regulatory concerns (Regulators’ Assessment) in a maximum of two rounds of comments and within 40 business days³.

In the absence of material regulatory concerns, the Applicant and its sponsors shall then finalize the prospectus together with the SEHK, and the IPO application may proceed to the Listing Committee Hearing. Please refer to the flowchart for an illustration of a possible process.

Generally, Applicants and the sponsors are expected to take about 60 business days in total to satisfactorily address comments of the regulators. In such a case, the IPO application process may be completed within 6 months, subject to the approvals of the Listing Committee and other relevant authorities.

(b) Eligible A-Share Listed Applicants

If an A-share listed company meets the following criteria when submitting an IPO application: (a) an expected minimum H-share market capitalisation of HK$10 billion; and (b) compliance with all laws and regulations throughout the two full financial years preceding the application in all material respects (and supported by legal opinions), it is eligible for an accelerated process (A-share Listed Applicant).

For an A-share Listed Applicant who submits a Fully Compliant Application, the SFC and SEHK pledge to further streamline the Regulators’ Assessment, which is expected to be completed in a maximum of one round of comments from each regulator, and within 30 business days³. An A-share Listed Applicant with no material regulatory concerns may proceed with the Listing Committee Hearing after finalisation of the prospectus with SEHK. Please refer to the flowchart for an illustration of a possible process.

(c) IPO Applications with Longer Process

The SFC or SEHK may extend the IPO application process on the follow grounds:

1. Applicant’s material compliance issues with the SFO, SMLR, or Listing Rules,
2. concerns on the quality of the application materials,
3. new material developments, or
4. incomplete responses to regulators’ comments
   (collectively, the Scenarios)

As a consequence, the Applicants may face the SFC’s and/or SEHK’s direct requisition letters under the SMLR (SMLR Letter) and/or a major concern letter (MCL). The vetting process may even be suspended, pending their satisfactory responses.

The SFC and SEHK however commit to proactively engage with the Applicants, sponsors, and advisors in the Scenarios after the first comment letters to clarify the regulatory concerns and expectations, so as to facilitate the application process.

Please refer to the flowchart for an illustration of a possible process.

2. 从优化审批流程时间表中得到最大惠益

(a) 全面准备是关键所在

优化审批流程时间表旨在加快符合所有法律及监管要求的首次公开招股申请，有助申请人在六个月内成功上市。为了充分从这新措施中得到惠益，预先精心准备将提交的上市申请材料是至关重要的。此外，密切注意市场发展及聘请经验丰富的顾问，也有助避免落入常见的陷阱。

(b) 积极与监管机构沟通 

证监会及联交所鼓励申请人及保荐人就该两个监管机构的意见，与它们进行沟通。申请人通过这沟通渠道，确保能够准确及时地回答监管机构的问题，从而更好地从这快速审批流程中得到惠益。

3. 结论：巩固香港首屈一指的国际金融中心地位

证监会及联交所实施了优化审批流程时间表，这将大大加快香港IPO的流程。通过协调监管力度，并保持与利益相关者的公开沟通，它们成功改善了以往漫长的审批时间，从而推进上市程序的发展。

此举措代表了两个监管机构致力促进优质的公司在联交所上市，加强香港作为国际金融中心的全球竞争力和吸引力。