Exchange Publishes Consultation Paper on Phase II of Listing Framework Competitiveness Review

On 21 September 2026, The Hong Kong Exchanges and Clearing Limited published the Consultation Paper on Phase II of the Listing Framework Competitiveness Review, with a 10‑week consultation period closing on 30 November 2026. Proposals target notifiable transactions, connected transactions and spin‑offs, aiming to boost listed issuers’ flexibility and efficiency for corporate‑transaction handling while preserving robust investor protection via enhanced disclosure rules and strengthened board accountability. Key measures include removing the profits ratio, raising the major‑transaction threshold to 50 % (retaining the 25 % threshold for financial‑assistance and securities‑investment‑related transactions), repealing the VSA/VSD classifications, relaxing rules for capital‑nature transactions in the ordinary course of business, revising the definition of connected subsidiaries and the setting of annual caps for continuing connected transactions, introducing a self‑assessment route for spin‑offs for eligible Main‑Board issuers, abolishing the assured‑entitlement requirement for spin‑offs, shortening the post‑listing spin‑off moratorium period from three years to one year, as well as tightening announcement‑disclosure obligations and aligning circular‑disclosure standards.