Background
On 24 March 2023, the Stock Exchange of Hong Kong Limited (the “HKEx”) published the consultation conclusions on the proposals to create a listing regime for Specialist Technology Companies in Hong Kong. Prior to the implementation of the new listing regime, Specialist Technology Companies faced difficulties listing in Hong Kong because they often cannot meet the Main Board financial eligibility requirements under the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”). The new regime, labelled “Chapter 18C” under the Listing Rules, is part of HKEx’s efforts to attract more technology firms to the city and to strengthen its position as a global financial center. The new listing regime, along with the Guidance Letter on Specialist Technology Companies, will come into effect on 31 March 2023.
A Specialist Technology Company is primarily engaged in, either directly or through its subsidiaries, researching and developing specialist technology products, and commercializing and/or selling those products within an acceptable sector of a specialist technology industry (“Specialist Technology Company”). These companies operate in emerging and innovative industries, require significant capital and R&D investment to commercialize their products or scale up their businesses, and take a relatively long time to generate substantial revenue or profits but have high growth potential.
Specialist technology industries include:
- Next-generation information technology
- Including cloud-based services and artificial intelligence.
- Including cloud-based services and artificial intelligence.
- Advanced hardware and software
- Including robotics and automation, semiconductors, advanced communication and transportation technology, electric and autonomous vehicles, aerospace technology, advanced manufacturing, quantum information technology and computing and metaverse technology.
- Including robotics and automation, semiconductors, advanced communication and transportation technology, electric and autonomous vehicles, aerospace technology, advanced manufacturing, quantum information technology and computing and metaverse technology.
- Advanced materials
- Including synthetic biological materials, advanced inorganic and composite materials and nanomaterials.
- Including synthetic biological materials, advanced inorganic and composite materials and nanomaterials.
- New energy and environmental protection
- Including new energy generation, storage and transmission technology and new green technology.
- Including new energy generation, storage and transmission technology and new green technology.
- New food and agricultural technologies
- Including new food and agriculture technology.
The new Chapter 18C listing regime
Under the new listing regime, Specialist Technology Companies will be categorized into Commercial Companies and Pre-Commercial Companies. The respective key qualifications for listing are summarized as follows:
