HK’s new listing regime for innovative science and technology companies effective from 31 Mar 2023 | Hogan Lovells

Hong Kong Stock Trade has introduced a new listing routine for “Specialist Engineering Companies” under Chapter 18C of the Listing Policies, successful from 31 March 2023. We deliver a temporary overview of the listing routine which includes important listing qualification specifications imposed.

Track record

On 24 March 2023, The Inventory Exchange of Hong Kong Constrained (the “Exchange”) revealed the consultation conclusions on the proposed regulatory framework for the listing of “Specialist Know-how Companies” less than a new chapter (Chapter 18C) to the Policies Governing the Listing of Securities on the Principal Board of the Trade (the “Listing Regulations”). The new Chapter 18C is helpful from 31 March 2023 where by providers might post a official listing software underneath this new listing routine. The Exchange has adopted a more issuer-helpful method in environment the eligibility conditions for Chapter 18C after taking into consideration the current market comments. This customer notify aims to provide a transient overview of the new listing regime.

Professional Technological innovation Providers are organizations that mostly have interaction in the research and advancement (“R&D”) of, and the commercialisation and/or gross sales of, products and/or solutions (the “Professional Technological know-how Products and solutions”) with science and/or technology used thereto (the “Specialist Technology”) in just an acceptable sector of a Specialist Technological innovation Industry. The Exchange will established out Specialist Technology Industries and suitable sectors in a non-exhaustive listing to be current from time to time, which currently addresses:

  • upcoming-generation information technologies – cloud-primarily based providers and synthetic intelligence
  • state-of-the-art components and application – robotics and automation, semiconductors, highly developed communication know-how, electric and autonomous autos, advanced transportation technologies, aerospace technological innovation, superior producing, quantum information technology and computing and metaverse technological know-how
  • superior elements – synthetic biological elements, advanced inorganic resources, highly developed composite materials and nanomaterials
  • new vitality and environmental protection – new strength technology, new vitality storage and transmission technological know-how and new green engineering and
  • new meals and agriculture systems – new meals technological innovation and new agriculture technological know-how.

A organization falling outdoors of the listing may possibly nevertheless be regarded as “within an suitable sector of a Expert Technologies Industry” if it can show (a) it has higher development probable (b) its accomplishment is attributable to the software, to its core business enterprise, of new technologies and/or the software of the relevant science and/or technology inside that sector to a new business enterprise design, which differentiates it from conventional market individuals serving similar people or stop people and (c) R&D drastically contributes to its predicted benefit and constitutes a big activity and expense. This sort of company have to post a pre-IPO enquiry to the Exchange to request private assistance.

The Exchange indicated that the new regime does not limit to individuals applicants with “top-edge” systems as it is believed that the results of a Specialist Technologies Firm would typically be attributed to the profitable commercialisation of the main technologies alternatively than the innovativeness of the technologies alone. Organizations with numerous business enterprise segments may also take advantage of the new regime as extensive as they are “principally engaged” in the suitable business enterprise of a Professional Technology Field.

Expert Technologies Providers are categorised into (i) corporations that have commercialised their Expert Technological know-how Products and have produced meaningful earnings, i.e. the Business Organizations, and (ii) firms that are (a) largely engaged in R&D and are boosting cash to even more their R&D to commercialise their Professional Technological innovation Items and/or (b) have not but created meaningful income, i.e. the Pre-Commercial Firms. Pre-Commercial Corporations are matter to extra stringent listing requirements given the heightened risks they are associated with.

Essential Listing Qualification Needs

Essential Offering and Disclosure Prerequisites


Crucial Put up-IPO Prerequisites

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