Hong Kong launches new measures to attract more tech, bio listings

[HONG KONG] Hong Kong launched a scheme on Tuesday (May 6) to offer smoother listings for tech companies on its stock exchange, as it looks to capitalise on Chinese companies’ growing appetite to raise funds offshore.

The new “technology enterprises channel” will make new listings easier for specialist technology and biotechnology firms, the bourse operator and Hong Kong’s Securities and Futures Commission said in a joint statement.

Under the scheme, the exchange, a unit of Hong Kong Exchanges and Clearing, will provide guidance on the eligibility and suitability for listing for prospective companies.

Applicants can confidentially file for initial public offerings, as disclosures of their operational strategies may pose heightened risk compared with other industries, the statement said.

It also allows tech firms to list with a weighted voting rights (WVR) structure, which allows companies to hold shares that carry extra voting rights, provided they meet certain requirements.

Hong Kong is the main destination for mainland Chinese firms looking to raise capital offshore, and bankers have said that mainland firms, mainly those in the tech sector, are accelerating plans to raise money offshore.

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Hong Kong authorities had first announced the technology enterprises channel in February. REUTERS