New listing regime in Hong Kong: companies from emerging and innovative sectors

Background of the listing reforms

After a two-month consultation, the Stock Exchange of Hong Kong Limited (HKEx) published the Consultation Conclusions on Listing Regime for Companies from Emerging and Innovative Sectors on 24 April 2018 (Consultation Conclusions). New listing rules and three guidance letters were introduced to implement the new listing regime with effect on 30 April 2018.

The new listing rules are set out in three new chapters in the Main Board Listing Rules (Listing Rules), namely:

1. Chapter 8A to govern listings of innovative companies with weighted voting rights (WVR) structures;
2. Chapter 18A to permit listings of pre-revenue biotech issuers that do not meet any of the Main Board financial eligibility tests; and
3. Chapter 19C to establish a concessionary secondary listing route for innovative companies primary listed in major international stock exchanges to list in Hong Kong.

To assist listing applicants understand the suitability requirements under the new chapters, HKEx has also published the following guidance letters:

1. Guidance Letter (HKEX-GL93-18) on “Suitability for Listing with a WVR Structure”;
2. Guidance Letter (HKEX-GL92-18) on “Suitability for Listing of Biotech Companies”; and
3. Guidance Letter (HKEX-GL94-18) on “Suitability for Secondary Listing as a Qualifying Issuer under Chapter 19C”.