China is reportedly mulling lower thresholds for biotech firms to list.
Bloomberg reports that Hong Kong’s bustling IPO scene may soon lose some of its luster as the Mainland is reportedly going over proposals to keep its most promising companies from going public outside of its borders.
Government entities like the China Securities Regulatory Commission and Ministry of Science and Technology are said to be considering proposals to lower the thresholds for biotechnology and high-tech firms, in a move that mimics Hong Kong’s earlier bourse reforms.
Biotech firms without a track record of profitability are now allowed to list in Hong Kong under sweeping reforms that kicked into effect last April, jumpstarting the local IPO scene as Amazon-backed Grail and Hua Medicine are amongst those gunning for Hong Kong IPOs amidst wider market access.
Hong Kong also permitted the public listing of companies with weighted voting right (WVR) structures in reforms intended to buoy the status of the local bourse in an attempt to challenge New York’s dominance in global IPO rankings.
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