On 10 February 2021, The Stock Exchange of Hong Kong Limited (HKEx) updated its guidance letter related to disclosure in listing documents of biotech companies.
The updated Guidance Letter, HKEX-GL107-20, provides guidance on presenting fair, balanced and accurate disclosure and additional expectations on disclosing certain key business and product areas of biotech companies listed under Chapter 18A of the Listing Rules.
HKEX’s Head of Listing Bonnie Y Chan said: “Since Chapter 18A was introduced in April 2018, we have seen a significant development in terms of the number and diversity of listing applications by biotech companies.”
Hong Kong has already become the world’s second-biggest biotech listing venue, with 30 biotech companies listed under Chapter 18A raising a total of $78 billion, spanning a diverse range of medical products with different scientific focus and business arrangements.
“As the breadth and depth of the Hong Kong biotech sector continues to expand, we want to provide further guidance to enhance disclosure in listing documents of biotech companies. We would also like to thank the Biotech Advisory Panel members for providing their continuous technical support in the review of listing applications as well as their valuable input on this updated Guidance Letter,” said Ms Chan.
The HKEX’s Biotech Advisory Panel is a panel of experienced participants in the biotech industry to provide advice relating to biotech companies. The function of panel is advisory only and members will be consulted on an individual and “as needed” basis.