HKEX sees half new IPO applications from tech firms

Hong Kong Exchanges and Clearing (0388) is handling more than 200 listing applications, half of which are from technology firms, said chief executive Bonnie Chan Yi-ting. 

By the end of August, the total refinancing volume reached HK$358 billion, with nearly 40 percent coming from the tech sector. She believes that significantly higher valuations in the tech segment are encouraging companies to seize market opportunities for financing actively.

Speaking at a forum in Shenzhen, Chen noted that many international long-term funds have recently participated in pre-initial public offering subscriptions for tech innovation companies, reflecting global investors' growing interest in Chinese technological innovation.

As of the end of August, 24 biotech companies are applying for listings under Chapter 18A, while 12 specialized tech companies are applying under Chapter 18C, covering cutting-edge fields such as autonomous driving and robotics. This demonstrates the Hong Kong market’s strong appeal and inclusivity for innovative enterprises. To align with international practices, HKEX now allows confidential submission of listing applications for Chapter 18C and Chapter 18A companies, facilitating more flexible financing arrangements.

Chen added that HKEX will continue to provide diversified products, ample liquidity, and efficient interconnectivity mechanisms. She hopes more outstanding tech companies will leverage capital to achieve leapfrog growth at critical development stages, fostering a more dynamic and resilient investment and financing ecosystem for tech enterprises.

HKEX has completed reforms to optimize the IPO pricing mechanism, with relevant listing rules officially implemented last month. These changes are expected to enhance the competitiveness of Hong Kong’s IPO market, and the exchange will continue to refine its institutional arrangements to keep pace with evolving market needs.