Three years after major listing reforms, new economy companies make up the bulk of Hong Kong’s initial public offerings, fueling a new growth story of the global financial hub.
The reforms, which came into force in April 2018, allow pre-revenue biotech companies, new economy firms with weighted voting rights structures, and qualified overseas-listed companies to raise capital in Hong Kong.
By end-March, 146 such companies had listed in Hong Kong since then, raising a total HK$682.2 billion (US$88 billion), or 61 percent of total IPO funds, Hong Kong Exchanges and Clearing Limited said on Thursday.
“We are very pleased to see that the introduction of the new listing regime has helped to transform our markets,” said Calvin Tai, HKEX interim chief executive. “HKEX has become the go-to international capital market for new economy companies, and is already the world’s second-biggest biotech fundraising hub.”