Hong Kong's bourse reform plan seeks to tap on Chinese drug stocks

SEHK is considering opening up the exchange to allow pre-profit biotech companies to list.

Hong Kong Stock Exchange is mulling a proposal that would allow biotechology companies to list even if they have no track record of profitability in an effort to boost homegrown companies in the healthcare industry, according to Bloomberg. 

If the proposal goes through, more Chinese healthcare firms may be able to launch IPOs which will facilitate access to funds for research and clinical trials. 

Without access to the Hong Kong market, such pre-profit companies “will likely go to America, but now Hong Kong comes in with its advantages in geography and language,” said Lu Xianping, founder of Chipscreen Biosciences Ltd., a Shenzhen-based drug developer.

Here’s more from Bloomberg:

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