10 A-Share Companies Terminate Hong Kong Listing Plans; 393 Firms Including 107 A-Share Issuers in Queue

As of July 27, ten A-share listed companies have announced termination of their Hong Kong listing plans this year, spanning industries such as energy, manufacturing, and consumer electronics. The companies generally cited a combination of factors including the current macroeconomic environment, their own business conditions, medium- to long-term development strategies, and changes in domestic and international capital market conditions.

In June, Xinao Gas announced the termination of its privatization of Xinao Energy and the concurrent H-share introduction plan. The company explained that nearly a year after filing, it had not obtained all the prerequisite approvals from domestic and overseas regulators, including the required filing with the China Securities Regulatory Commission and the in-principle approval from the Hong Kong Stock Exchange listing committee, making the approval timeline highly uncertain. Additionally, the restructuring process was subject to multiple regulatory constraints that limited the company's operational arrangements.

In July, Broad Ocean Motor announced the termination of its H-share issuance and listing. The company's controlling shareholders, Lu Chuping and Peng Hui, together hold a 26.82% stake. Peng Hui filed for divorce and requested a division of the equity. Under Hong Kong listing rules, the applicant must meet control stability requirements.

As of July 27, 393 companies are still awaiting Hong Kong listing hearings and listings, among which 107 are A-share listed companies. The direct reasons for termination vary. Some companies could not continuously meet the relevant Hong Kong listing standards, for example, due to judicial risks faced by the actual controller or doubts about control stability. Others chose to terminate due to cost pressures from the lengthy review process. In recent years, domestic IPO scrutiny has been tightening, with a large overall queue and a slower review pace. A-to-H projects require multiple internal approvals from the CSRC, and the multiple approval procedures extend the project timeline.