The Securities and Futures Commission (the SFC) and The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), are pleased to jointly announce today (Tuesday) the launch of a dedicated Technology Enterprises Channel (TECH) to further facilitate New Listing applications from prospective Specialist Technology Companies and Biotech Companies1, as well as a new confidential filing option for these companies.
In addition, the Exchange has updated the Guide for New Listing Applicants (the Guide) that these companies are presumed to have satisfied the Innovative Company Requirements2 and the external validation requirement3 for listing with a weighted voting right (WVR) structure under Main Board Chapter 8A.
HKEX’s Head of Listing, Ms Katherine Ng, said: “HKEX is committed to attracting high-quality companies from around the world to its markets by supporting our prospective issuers on their listing journey. We are therefore delighted to be launching TECH, which will provide early and tailored guidance for Specialist Technology Companies and Biotech Companies, helping them address key matters at a preparatory stage and navigate regulatory requirements with greater clarity and confidence, thereby facilitating a more efficient pathway to successful listing in Hong Kong. This initiative highlights our commitment to fostering transparency and supporting these innovative sectors in achieving their strategic goals. The focus on these innovative sectors underscores our ongoing mission to drive technological advancements and elevate the market’s competitiveness, resilience, and vibrancy.”
The SFC’s Executive Director of Corporate Finance, Mr Michael Duignan, said: “The SFC supports the establishment of TECH and the new confidential filing option for Specialist Technology Companies and Biotech Companies to strengthen Hong Kong’s position as a premier listing platform for emerging and innovative companies. This is another example showcasing the SFC’s commitment to facilitating the development of a vibrant, diverse and high-quality listing market whilst ensuring the listing regime is adaptive to the changing dynamics in the global market and sufficiently robust to protect investors.”
TECH
TECH supports prospective Specialist Technology Companies and Biotech Companies in understanding applicable Listing Rules and preparing for their listing in Hong Kong before submitting formal New Listing applications through the following measures offered by the Exchange:
- Dedicating a specialised team with relevant experience in reviewing and providing guidance on Main Board Chapters 18C and 18A applications;
- Engaging with prospective companies to gain deeper knowledge of their specific businesses and facilitate their comprehension of Listing Rule requirements;
- Providing 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
- Providing opportunities to discuss and seek the Exchange’s preliminary guidance on case-specific issues arising under the Listing Rules.
Confidential filing
Specialist Technology Companies and Biotech Companies are typically companies that are in their early stage of development or have yet to commercially launch their products. Premature and prolonged disclosure of information on these companies’ operational strategies, proprietary technologies, and listing plans may pose heightened and disproportionate risks compared to other industries.
To assist these companies in mitigating these risks, the Exchange will permit these companies4 seeking a listing under Main Board Chapters 18C and 18A to submit their Application Proofs5 confidentially. For further details, please refer to Chapter 6.4 of the Guide. The confidential filing option shall be available for listing applications filed under Main Board Chapters 18C and 18A after the date of this announcement.
Specialist Technology Companies and Biotech Companies seeking to list with a WVR structure
The listing regimes under Main Board Chapters 8A, 18C and 18A are designed for emerging and innovative applicants with similar needs, and applicants seeking a listing under these chapters are subject to similar requirements on pre-IPO third party investments.
Specialist Technology Companies and Biotech Companies fully meeting the requirements under Main Board Chapters 18C and 18A respectively shall be presumed to have satisfied the Innovative Company Requirements and the external validation requirement6 and shall qualify as innovative companies for the purpose of Main Board Chapter 8A. For further details, please refer to Chapters 2.2, 2.3 and 2.5 of the Guide.
Prospective applicants seeking to initiate communication with the Exchange under TECH may contact the Listing Division following the instructions set out in our TECH webpage.
Notes:
- Unless otherwise defined, capitalised terms in this announcement shall have the same meanings ascribed to them under the Listing Rules or the Guide.
- Set out in paragraph 4 of Chapter 2.2 of the Guide.
- Set out in paragraph 6 of Chapter 2.2 of the Guide.
- The SFC has formally consented to the new confidential filing option for Specialist Technology Companies and Biotech Companies pursuant to Main Board Rule 2.04.
- For the avoidance of doubt, a Specialist Technology Company or a Biotech Company that is required to publish an OC Announcement under Main Board Rule 12.01C shall publish the OC Announcement on the same date as it publishes its PHIP.
- For the avoidance of doubt, Specialist Technology Companies and Biotech Companies seeking listing with a WVR structure shall remain subject to all other applicable requirements under Main Board Chapter 8A and Chapter 2.2 of the Guide.
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.
As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.
HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.
www.hkexgroup.com
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