The Johannesburg Stock Exchange (JSE) has expanded its secondary listings framework by allowing secondary listings for companies primarily listed on the Hong Kong Exchanges and Clearing Ltd (HKEX). This strategic move enables HKEX-listed companies to pursue a secondary listing on the JSE, as well as qualifying for a fast-track listing process.
The fast-track listing process allows HKEX-listed companies, that have been operational for a minimum of 18 months, to seek a listing on the JSE Main Board or Alternative Exchange without the need for a pre-listing statement but rather with a pre-listing announcement. This framework still ensures that investors have access to relevant information about the company in order for them to make informed investment decisions. This initiative streamlines the dual-listing process, leveraging the extensive market information available for these companies in their primary markets.
The JSE's fast-track listing route, in place since 2014, offers an expedited approval process, reduced listing fees, and minimises the resource requirements typically associated with a pre-listing statement. This approach is part of the JSE's ongoing effort to enhance accessibility and efficiency for international companies.
HKEX now joins an esteemed group of global exchanges recognised for the fast-track process, including the London Stock Exchange, Australian Securities Exchange, New York Stock Exchange, Toronto Stock Exchange, and the Singapore Stock Exchange.
"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," Andre Visser, Director of Issuer Regulation.
This development is 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 JSE's recent SA Tomorrow Conference to drive foreign direct investment into South Africa in Shanghai and Hong Kong underscores the growing interest of Asian investors in South Africa and African continent.
"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,” says Leila Fourie, JSE Group CEO.
