HKSI Paper 7 The equity market question: listing method fits

HKSI Paper 7The equity market

Thames Retail plc, widely held and listed in London for 20 years, seeks a Hong Kong listing of its existing shares, with no new shares and no marketing. Which listing method fits?

A An offer for subscription
B An introduction
C An offer for sale
D A placing

Show the answer and explanation

Answer: B. An introduction

An introduction is an application for listing of securities already in issue where no marketing arrangements are required, because the securities are already so widely held that adequate marketability when listed can be assumed (Main Board Rule 7.13). Rule 7.14 lists securities already listed on another stock exchange as a normal case for an introduction. No money is raised. An offer for subscription would mean issuing new shares to the public, an offer for sale would mean existing holders marketing shares to the public, and a placing would mean selling to selected investors. Each involves marketing shares in Hong Kong, which Thames Retail is not doing. Source: HKEX Main Board Listing Rules r.7.13, r.7.14 (as at October 2026).

Common mistake

Thinking every listing must involve an offer of shares. A listing by introduction raises no money and markets nothing.

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Original study material mapped to the public HKSI Paper 7 syllabus. Unofficial, not endorsed by HKSI Institute or the SFC. Verify figures and rules against current guidance before relying on them.