HKEX launches initiative for tech and biotech listings

The government is creating a platform to help facilitate new listings from these companies.

The Securities and Futures Commission (SFC) and the Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), have announced the launch of the Technology Enterprises Channel (TECH).

This initiative aims to further facilitate new listing applications from specialist technology companies and biotech companies, as well as a new confidential filing option for these companies.

Under TECH, prospective companies will have the following assistance:

• A dedicated specialised team with relevant experience in reviewing and providing guidance on Main Board Chapters 18C and 18A applications;
• Engagement with prospective companies to gain deeper knowledge of their specific businesses and facilitate their comprehension of Listing Rule requirements;
• Guidance on the eligibility and suitability for listing, such as the requirements for Core Products, the acceptance of other biotech products and/or clinical trials done under the regulation of different authorities, the qualifications and independence of Sophisticated Investors, acceptable sectors for Specialist Technology Industries, as well as factors for accepting new sectors/ industries outside the current scope; and
• Opportunities to discuss and seek the Exchange’s preliminary guidance on case-specific issues arising under the Listing Rules.

Additionally, the Exchange has updated the guide for new listing applicants, clarifying that these companies are presumed to have satisfied the innovative company requirements and the external validation requirement for listing with a weighted voting right (WVR) structure under Main Board Chapter 8A.