Hong Kong is drafting plans to establish an over-the-counter (OTC) market for stocks of delisted companies, with an aim to provide shareholders with an opportunity to recover some of their losses, Bloomberg reported, citing sources.

After initial consultations with market participants, it is understood that HKEX (00388.HK)  +3.200 (+0.826%)    Short selling $318.58M; Ratio 14.126%   and the Securities and Futures Commission (SFC) are developing a blueprint for the OTC market, which will offer investors wishing to sell their shares an exit opportunity. However, differing from the US model, the market will not allow for raising new funds.

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According to the report, due to violations such as long-term suspension and failure to publish financial reports or maintain public shareholding levels, companies with a valuation of over $19 billion face delisting risks this year. Among them are at least eight Chinese developers, including EVERGRANDE (03333.HK)  0.000 (0.000%)   .

A spokesperson for HKEX said they are considering the pros and cons of the OTC market and will carefully review market feedback after the consultation period ends in March. Meanwhile, a spokesperson for the SFC noted that the plan is still in a very early stage.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-26 12:25.)