Stock market to expedite tech listings

Cici Cao

Hong Kong will launch a new channel on the stock market to expedite listings of tech companies amid a surge in the sector driven by mainland shares.

Investors cheered the news, with the Hang Seng Tech Index once more than doubling from its lows of 2022, hitting an over three-year-high, amid the artificial intelligence-driven frenzy.

Paul Chan Mo-po said Hong Kong Exchanges and Clearing is collaborating with the Securities and Futures Commission in preparing a dedicated "technology enterprises channel" to facilitate the listing of specialist technology and biotechnology companies, especially those already listed in the mainland.

Government sources said the channel will focus on offering services in a bid to streamline the listing approval process, adding that companies qualified under chapter 18C will benefit.

The chapter of HKEX's listing rules is related to specialist technology companies and Chinese AI-driven drug research company XtalPi was the first to list under the chapter.

Chan also said the government is reviewing the tax deduction arrangements for various expenditures on intellectual property or IP rights.

Meanwhile, the financial chief revealed plans to allow the stamp duty payable on the transfer of stocks at yuan counters to be paid in yuan. The proposal will be put to the Legislative Council for approval.

Also, financial regulators are to put forward proposed enhancements in the trading unit system - the so-called "board lot" system - within this year.

Chan said the HKEX and SFC will improve the system to unveil trading arrangements that better meet liquidity characteristics of shares of different sizes and investment needs.

He said a number of enterprises from the Association of Southeast Asian Nations are applying for a listing in the city, covering a wide range of areas, such as biotechnology, integrated logistics and mining.

He said HKEX will step up its promotions with Middle East and Asean nations explore collaborations with them.

Major lender HSBC welcomed the initiative, saying it will continue to connect its customers with the world.

Chan also said Hong Kong will continue to encourage digital bonds issuances through the Digital Bond Grant Scheme, while exploring the possibility of tokenizing traditional bonds already being issued.

The Hong Kong Monetary Authority is set to issue a third tranche of tokenized bonds, he added.

Separately, Hong Kong will soon reveal its second policy statement on the development of virtual assets to explore their potential for supporting traditional financial services and the real economy.