Hong Kong exchange backs down on contentious plan to double profit qualification for IPOs after outcry

Hong Kong Exchanges and Clearing Limited (HKEX) has decided to water down its proposal to drastically raise the profit qualification for a Main Board listing in the world’s third-largest stock market, yielding to strong opposition to the plan, according to a source close to the exchange.Companies seeking to raise funds on the HKEX’s Main Board must have earned at least HK$80 million (US$10.3 million) in combined profits in the three years prior to the listing, compared to the current…