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There are about 2,000 companies listed in the Hong Kong Main Board, of which 24 companies are listed under Chapter 21 of the Stock Exchange's Listing Rules as investment companies. The market calls these companies Chapter 21 companies.

The primary business of Chapter 21 companies is to invest in listed or unlisted securities, including warrants, money market instruments, commodities, options and futures contracts as well as other collective investment schemes. As the investment performance is closely related to the company’s result and return to shareholders, they need investment managers with experience, expertise and integrity.

Different listing and disclosure requirements

Investment companies are subject to different listing requirements and disclosure standards as compared to other listings.

Companies applying for listing on the Main Board must meet either one of the following three "Financial Eligibility Tests": The profit test, the market capitalisation/ revenue/ cash flow test, or the market capitalisation/ revenue test. Investment companies are exempted from the test. Some listing requirements are also not applicable to investment companies, e.g. the expected market capitalisation of at least $500 million at the time of listing, and an open market for the securities sought for listing such as maintain a public float of at least 25%.

In terms of disclosure requirements, investment companies are subject to additional continuing obligations, e.g. disclosing a list of all investments with a value greater than 5% of all the company’s gross assets and at least up to 10 of its largest investments in its annual report, publishing a division of income between dividends and interests received and other forms of income (which may be income of associated companies) in the interim report and any preliminary announcement of results for the full year, as well as its net asset value as at the end of each month.


26 March 2019