In a strategic move to broaden its secondary listings framework, the Johannesburg Stock Exchange (JSE) has opened its doors to companies primarily listed on the Hong Kong Exchanges and Clearing Ltd (HKEX). This expansion allows HKEX-listed companies to pursue secondary listings on the JSE and qualify for a streamlined fast-track listing process.
The newly introduced fast-track listing process caters to HKEX-listed companies with a minimum operational history of 18 months, enabling them to seek a listing on the JSE Main Board or Alternative Exchange without the requirement for a pre-listing statement. Instead, companies can opt for a pre-listing announcement, ensuring investors still have access to essential information for making informed investment decisions. This initiative aims to simplify the dual-listing process, capitalizing on the wealth of market information available for these companies in their primary markets.
The JSE’s fast-track listing route, implemented since 2014, promises an accelerated approval process, reduced listing fees, and minimized resource requirements typically associated with a pre-listing statement. This move aligns with the JSE’s commitment to enhancing accessibility and efficiency for international companies seeking a listing on its exchange.
Hong Kong Exchanges and Clearing Ltd (HKEX) now joins a prestigious group of global exchanges acknowledged for the fast-track process, alongside the London Stock Exchange, Australian Securities Exchange, New York Stock Exchange, Toronto Stock Exchange, and the Singapore Stock Exchange.
Andre Visser, Director of Issuer Regulation, emphasizes the importance of integrating global financial markets, stating, “Integrating global financial markets is key to fostering new listings and offerings to our market. This integration with HKEX aligns with our commitment to global market collaboration to achieve this.”
This development marks a significant milestone in the JSE’s Asia strategy, following the inclusion of the Singapore Stock Exchange in its secondary listings framework in 2021. The recent SA Tomorrow Conference, hosted by the JSE to drive foreign direct investment into South Africa in Shanghai and Hong Kong, underscores the growing interest of Asian investors in South Africa and the broader African continent.
Leila Fourie, JSE Group CEO, comments on the significance of dual listings in the market, stating, “Dual listings are an important feature of our market, offering local investors a more diverse range of investments and enhancing the liquidity and global relevance of South Africa’s capital markets. The fast-track process has the added potential to expand the universe of listed companies on our local bourse.”
Photo (Photo: Reuters)
By: Delino Gayweh
Serrai Financial Analyst
19th November, 2023
