Details announced! HKEx and the Hong Kong Securities Regulatory Commission officially launch the “Science and Enterprise Hotline”

The Zhitong Finance App learned that on May 6, the Hong Kong Securities Regulatory Commission and the Hong Kong Stock Exchange issued a joint announcement today announcing the official launch of the “Technology Enterprise Hotline” to further facilitate the listing of specialty technology companies and biotechnology companies, and to allow these companies to choose to submit listing applications in a confidential form. In addition, the Exchange has updated the “Guidelines for New Listing Applicants” (“Guidelines”) to explain that when these two types of companies are listed using different voting rights structures, they will be deemed by the Exchange to have met the innovative industry company requirements and external approval requirements listed in Chapter 8A of the Main Board Listing Rules.

The details are as follows:

“Science and enterprise hotline”

Through the following measures provided by the Stock Exchange, the “Science and Enterprise Hotline” aims to help specialty technology companies and biotechnology companies interested in listing in Hong Kong understand the applicable “Listing Rules” and carry out related listing preparations before submitting a formal listing application:

led by a professional team with relevant experience (i.e. reviewing and providing guidelines for listing applications under Chapter 18C and Chapter 18A of the Main Board Listing Rules);

Reach out to potential applicants to learn more about their company's business and help them understand the requirements of the Listing Rules;

Provide guidance on eligibility and suitability for listing, such as core product requirements, whether to accept other biotech products and/or clinical trials supervised by different drug regulators, qualifications and independence of senior investors, acceptable fields for the specialty technology industry, and considerations for accepting new fields/industries other than the current scope as specialty technology industries; and

Such applicants may discuss with the Exchange and seek initial guidance on specific issues relating to the Listing Rules.

Submit your application in a confidential form

Specialty technology companies and biotech companies are generally in the early stages of development or the product is not yet commercialized. Compared to other industries, disclosing a company's operating strategy, know-how, or listing plans too early or too long may present excessive risks for these companies.

To help these companies mitigate related risks, the Exchange will allow companies listed under Chapter 18C and Chapter 18A of the Main Board Listing Rules to submit application versions in a confidential form. Refer to chapter 6.4 of the Guide for further details. After the date of this announcement, specialty technology companies and biotechnology companies may choose to submit listing applications in a confidential form.

Speciality technology companies and biotech companies seeking listing under different voting rights structures

Chapter 8A, Chapter 18C, and Chapter 18A of the Main Board Listing Rules are listing mechanisms specially designed for applicants in emerging and innovative fields with similar needs. These listing sections have similar provisions on third-party investment prior to the initial public offering for applicants seeking listing.

Special technology companies that fully comply with Chapter 18C of the “Main Board Listing Rules” and biotechnology companies that fully comply with Chapter 18A of the “Main Board Listing Rules” will be deemed to have met the innovative industry company regulations and external approval requirements listed in Chapter 8A of the “Main Board Listing Rules”, that is, the requirements for innovative industry companies that meet the requirements of companies with different voting rights structures to be listed. Refer to chapters 2.2, 2.3 and 2.5 of the Guide for further details.

Hong Kong Stock Exchange listing director Wu Kit-ping said that HKEx is committed to attracting high-quality companies from around the world to go public in Hong Kong and to support potential issuers in the process of preparing for listing. Therefore, we are pleased to launch the “Technology Enterprise Hotline” to provide special technology companies and biotechnology companies with specific guidance before submitting listing applications. The “Science and Technology Enterprise Hotline” answers key questions for these companies in the early stages of preparation for listing, helps them more clearly understand and meet relevant listing regulations, and further assists them in preparing for listing more efficiently. Through the “Science and Enterprise Hotline”, HKEx hopes to continuously improve regulatory transparency, support the development of innovative enterprises, promote technological progress, and further enhance the vitality, competitiveness and resilience of the Hong Kong market.

Mr. Dai Lin, Executive Director of the Corporate Finance Department of the Hong Kong Securities Regulatory Commission, said, “The SFC supports the establishment of a “Science and Enterprise Hotline” and allows specialty technology companies and biotech companies to choose to submit listing applications in a confidential form to reinforce Hong Kong's position as the preferred listing platform for emerging and innovative companies. This initiative once again demonstrates the CSRC's commitment to promoting the development of a dynamic, diverse and high-quality listing market, while ensuring that the listing system adapts to changes in the global market and is sufficiently robust to protect investors.”