Hong Kong has launched a new drive to encourage additional listings from technology and biotechnology companies. The move is part of the city’s overall plan to strengthen its position as a global financial hub and capitalise on Chinese enterprises’ growing interest in raising funds overseas.
The new framework, known as the “technology enterprises channel,” was announced on Tuesday and is intended to make the listing process more efficient. It will make it easier for specialist IT firms and biotech enterprises to list on the Hong Kong Stock Exchange. The strategy is supported by the exchange operator and the Securities and Futures Commission of Hong Kong, which released a joint statement describing the new procedures.
Hong Kong Exchanges and Clearing will now provide early assistance on listing eligibility and suitability. Additionally, corporations will be able to file confidential IPO filings. This is especially critical for companies whose business models entail sensitive intellectual property or strategies that must be kept confidential before public disclosure.
Importantly, the initiative allows the adoption of a weighted voting rights (WVR) structure, which allows corporations to preserve greater control by issuing shares with extra voting power if they meet certain requirements.
