17 September 2020
Introduction
Biotechnology is part of the knowledge economy and it combines creativity, know-how and anticipation of human beings with thorough research and application to benefit people worldwide.
The Hong Kong Stock Exchange predicts Hong Kong to become the largest biotech capital-raising hub within five to ten years and expects the biotech sector to be the main driver of the Hong Kong stock market.
The Hong Kong listing regime was reformed in April 2018 to permit the listing of Biotech Companies that do not fulfil the usual financial eligibility tests set out in the Listing Rules. Under the new regime, pre-revenue Biotech Companies may become eligible to list under Chapter 18A of the Listing Rules. Since then, listing under Chapter 18A have attracted strong interest from investors, such as the listing of Kintor Pharmaceutical Limited, which Ashurst had recently advised on.
This guide summaries the requirements of Chapter 18A and other guidance issued by the Hong Kong Stock Exchange specifically relating to the listing of Biotech Companies.
This guide covers the following topics:
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eligibility and suitability requirements for listing;
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disclosure requirements in listing documents;
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other matters relevant to listing; and
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continuing obligations.
For the avoidance of doubt, the guide does not cover the listing of Biotech Companies that can fulfil the financial eligibility requirements set out in Chapter 8 of the Listing Rules, as these Biotech Companies cannot list under Chapter 18A.
Special thanks to Janny Tai, Counsel; Li Jiang, Counsel; Brenton Tse, Associate; Anna Barreira, Expertise Lawyer on their contribution to the draft of this guide.
Download the guide here.
For further information, please contact:
Melody He, Partner, Ashurst
Melody.He@ashurst.com
