In a move to bolster its appeal as a hub for innovative enterprises, Hong Kong regulators unveiled two key initiatives aimed at easing the listing process for biotech and specialist technology companies on 6 May 2025.
The Hong Kong Securities and Futures Commission and the Stock Exchange of Hong Kong jointly announced the launch of a new Technology Enterprises Channel (TECH) and the introduction of a confidential filing option for these companies to address their concerns about premature disclosure of proprietary technologies.
TECH is a dedicated communication channel to assist these companies in addressing key matters at a preparatory stage and navigating regulatory requirements with greater transparency.
The exchange has also updated the Guide for New Listing Applicants, stating that these companies will be presumed to have satisfied the innovative company requirements and the external validation requirement for listing with a weighted voting right (WVR) structure under chapter 8A of the listing rules.
Technology Enterprises Channel
TECH assists prospective biotech companies and specialist technology companies in understanding the applicable listing rules and preparing for their listings in Hong Kong before they submit formal listing applications. Key measures include:
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- Dedicating a specialised team with experience in reviewing and providing guidance on new listing applications under chapters 18A and 18C of the listing rules;
- Engaging with these companies to understand their businesses and assist them in comprehending the listing rules’ requirements;
- Providing guidance on the eligibility and suitability requirements for listing, including core products, sophisticated investors and acceptable sectors for specialist technology industries; and
- Offering preliminary guidance on case-specific issues under the listing rules.
The exchange encourages prospective biotech companies and specialist technology companies to utilise TECH and initiate communication with the listing division by submitting the TECH enquiry form, along with the additional information using form M119. Enquiries should be sent via email to IPO_TECH@hkex.com.hk.
Confidential filing
Specialist technology companies and biotech companies, often in early development stages, face significant risks from premature disclosure on their operational strategies, proprietary technologies and listing plans. To mitigate these risks, the exchange allows the confidential submission of application proofs for listings under chapters 18A and 18C of the listing rules. This option is available for listing applications filed after 6 May 2025.
Companies with a WVR structure
Biotech companies and specialist technology companies that fully meet the requirements under chapters 18A and 18C of the listing rules, respectively, will be presumed to have satisfied the innovative company requirements and the external validation requirement set out in paragraphs 4 and 6 of chapter 2.2 of the Guide for New Listing Applicants, and will qualify as innovative companies for the purposes of chapter 8A of the listing rules.
However, these companies will remain subject to all other applicable requirements under chapter 8A of the listing rules and chapter 2.2 of the guide.
Business Law Digest is compiled with the assistance of Baker McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker McKenzie by e-mailing Howard Wu (Shanghai) at howard.wu@bakermckenzie.com
