Hong Kong financial authorities on Friday announced plans to introduce a fast-track option for eligible Chinese mainland firms and streamline the IPO application review process for all applicants, in a bid to cement the city’s position as the region’s premier listing venue.

Under the new framework, eligible A-share companies with a minimum market capitalization of HK$10 billion ($1.28) can benefit from an accelerated IPO application process, reducing the review period to up to 30 business days, according to a joint statement published by the city’s bourse operator, the Stock Exchange of Hong Kong Ltd (HKEX) and the Securities and Futures Commission (SFC).

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A-share companies seeking the fast route must provide legal advisers’ opinions confirming their regulatory compliance with all applicable A-share listing laws and regulations for the preceding two financial years.

The new rules also stated that for all applications meeting requirements, regulators will complete their assessment within 40 business days, after a maximum of two rounds of comments. Applicants are expected to address regulators’ comments within 60 business days, with the entire process designed to be completed within a six-month window.

HKEX’s Head of Listing Katherine Ng said the new policy, including the introduction of the Accelerated Timeframe for eligible A-share listed companies, “will provide greater clarity and certainty in the application process for New Listing applications, thereby assisting potential applicants and their advisers in formulating their listing plans, and further elevating Hong Kong’s attractiveness as an international financial center.”

Michael Duignan, the SFC’s executive director of corporate finance, said the SFC “fully support” the initiative which is in line with the committee’s “strategic priority to improve the global competitiveness and appeal of Hong Kong’s capital markets”.

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Hong Kong’s financial experts lauded the new IPO policy with its potential to enhance transparency and certainty in the listing process, touting that it injected fresh momentum into the city’s role as an international financial hub.

Mofiz Chan, chairman of the Hong Kong Securities and Futures Professionals Association, noted the initiative could particularly benefit listed companies and investors.

“A fast-track review timeline for companies listed on the A-share market… clarifies regulatory responsibilities, fostering standardization, and reflects an openness to market feedback,” Chan said.

“However, some concerns remain. The fast-track criteria are stringent, potentially excluding smaller A-share companies,” he noted.

Financial sector lawmaker Robert Lee Wai-wang echoed Chan. He said, “These measures… enhance overall transparency and facilitate potential issuers’ listings in Hong Kong.”

Lee added that the optimized review process timeline would assist applicants and their advisors in formulating listing plans, further enhancing Hong Kong’s attractiveness as an international financial center.

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The regulatory reform came as the city’s leader John Lee Ka-chiu delivering his third annual Policy Address on Wednesday, which highlighted “striving for more listing of enterprises in Hong Kong” and encouraging “large-scale mainland enterprises to list here”.

The Hang Seng Index ended a four-day losing streak on Friday, advancing 3.6 percent to close at 20,804.

Contact the writer at tianyuanzhang@chinadailyhk.com