Zhu Xiaoyun, Vice President Of Hong Kong Stock Exchange Global Listing Service: Hong Kong Stock Market Highly Recognised High Quality Biotechnology Company

Contributing writer Zhu Lina Shenzhen Report

Since the launch of the IPO reform in April last year, Hongkong has become the second largest biotechnology company's listing destination after the United States, attracting 22 biotech companies to list in Hong Kong. Zhu Xiaoyun, vice president of Hongkong exchanges global listing service, said in December 19th at the first "Innovation Economy Summit Forum of Guangdong, Hongkong and Macau".

Because biomedicine is a typical "high input, high-risk, long cycle" industry, the average R & D period is about ten years. Therefore, the HKEx has launched the 18A chapter to appropriately reduce the listing threshold for biotechnology companies.

Zhu Xiaoyun Gan Jun photo

She disclosed that 14 of the 22 biotechnology companies listed in Hong Kong were listed on the 18A chapter, with a total fund of HK $33 billion 600 million. The 18A section allows non biotech companies to be listed on the HKEx, but must meet some preconditions, including the market value of at least HK $1 billion 500 million at the time of listing. The company has a core product regulated by the competent authority and has passed the conceptual development process.

For biotech companies, the reform of the HKEx opened the door to the capital market for them. Zhu Xiaoyun said: "Hongkong has a diversified investor group. And a unique Hong Kong stock exchange mechanism to help enterprises maximize their market value.

Take the company as an example, the company listed on the NYSE in 2015 and delisted in 2017, when the P / E ratio was only about 41 times. In May of last year, A completed the listing of the A-share market, and completed the listing of H shares in December, raising the size of HK $7 billion 500 million. At present, the company has a public platform in Hongkong and A shares, its total market capitalization is close to 20 billion US dollars, and PE in 2019 is as high as 60 times.

In addition, the Hongkong Stock Exchange listing and approval system is very efficient and transparent, "can ensure that enterprises can have a very good timetable for listing. Listing in Hongkong, in itself, is a direction of disclosure based approval, and the risk of policy is very low. " She said frankly.

She disclosed that in 2018, the HKEx received 372 IPO applications, and only 25 actually refused. "Generally speaking, more than 50% can be completed in 120 days. If the enterprise is a relatively simple business mode, the approval process can be completed in 2-3 months."