On 6 May 2025, the Securities and Futures Commission (SFC) and the Hong Kong Stock Exchange (HKEX) jointly announced the launch of a dedicated Technology Enterprises Channel (TECH). It aims to facilitate new listing applications from prospective Specialist Technology Companies and Biotech Companies under Chapter 18C and Chapter 18A of the Main Board Listing Rules (Listing Rules), respectively, as well as a new confidential filing option for such companies.
TECH has introduced a number of new measures to support prospective Specialist Technology Companies and Biotech Companies in understanding the applicable Listing Rules and assist in their preparation for listing in Hong Kong before they submit formal new listing applications. These measures include:
- Specialised team: Dedicating a team with relevant experience in reviewing and providing guidance on Chapters 18C and 18A applications.
- Enhanced engagement: Engaging with prospective Specialist Technology Companies and Biotech Companies to gain a deeper knowledge of their specific businesses and facilitate their comprehension of the requirements of the Listing Rules.
- Guidance: Providing guidance on the eligibility and suitability for listing of prospective Specialist Technology Companies and Biotech Companies.
- Case-specific advice: Providing opportunities for prospective Specialist Technology Companies and Biotech Companies to discuss and seek the HKEX’s preliminary guidance on case-specific issues arising under the Listing Rules.
Prospective applicants seeking to communicate with HKEX under TECH may contact the Listing Division set out in the TECH webpage.
As Specialist Technology Companies and Biotech Companies are often in their early stages of research and development or have yet to commercially launch their products, premature and prolonged disclosure of information on such companies’ details may pose greater risks compared to other industries. In order to mitigate these risks, companies seeking a listing under Chapters 18C and 18A are now permitted to submit their draft listing documents confidentially. This confidential filing option will be available for listing applications by Specialist Technology Companies and Biotech Companies after 6 May 2025.
The regime and requirements for listing with a weighted voting right structure is governed under Chapter 8A of the Listing Rules. Specialist Technology Companies and Biotech Companies that fully meet the requirements under Chapters 18C and 18A, respectively, will now be presumed to have satisfied the innovative company requirements and external validation requirements under Chapter 8A, but are still subject to all other applicable requirements under the weighted voting right regime.
The introduction of TECH and confidential filings for Specialist Technology Companies and Biotech Companies represents the commitment of SFC and HKEX to attract high-quality companies from innovative sectors around the world to its markets. By supporting prospective issuers on their listing journey in Hong Kong through enhancing transparency and providing support, it is very likely to increase the attractiveness of Hong Kong’s IPO market. Prospective listing applicants are welcome to contact the authors of this legal update for further details.
