How can listed companies in Hong Kong engage in the virtual asset sector? Key things to know

This publication was written by John Baptist Chan, Urszula McCormack, and Carlton Ng.

The recent wave of virtual asset sector institutionalisation has seen a special class of regulation become especially relevant – stock exchange listing rules. Many listed companies are interested in gaining exposure to virtual assets through directly holding virtual assets or through blockchain sector investments. 

What are the rules governing listed companies in Hong Kong ("HK Listed Companies") when making investments into virtual assets or venturing into virtual asset-related business activities? Further, what are the listing requirements for new listing applicants whose principal line of business involves virtual assets?  

In this alert, we will examine some of the key things to know about Hong Kong's requirements for HK Listed Companies and potential listing applicants, focussing on four key areas.