The Hong Kong Stock Exchange optimizes the listing system for structured products. The new rules will be implemented in stages starting in May.

The Hong Kong Stock Exchange announced today the optimization proposal for the listing system of structured products, and the related new rules will be implemented in steps. The main product regulations will take effect on May 1, with the remaining revisions taking effect on July 1. Existing issuers and guarantors will have a 12-month adaptation period. The main product regulation revisions focus on three aspects: 1. The minimum issue price of derivative warrants will be reduced from HK$0.25 to HK$0.15, and the minimum issue price rule will be removed for bull and bear warrants; 2. The minimum market value for the issuance of derivative warrants and bull and bear warrants will be reduced from HK$10 million to HK$6 million; 3. Terms of newly issued products must be identical to existing issuances. Wu Jiehuan, the head of listing regulation at the Hong Kong Stock Exchange, stated that this reform will promote product innovation and further enrich the diverse asset ecosystem of the Hong Kong Stock Exchange.