Hong Kong regulators are keen to attract
IPO-ready biotech companies, but investor protection measures
need to improve
Since Hong Kong launched its new listings regimes for
companies with weighted voting rights and pre-revenue biotech
firms in 2018, a number of Chinese companies have made it their
venue of choice for an initial public offering (IPO). But stock
prices have not performed well.
Observers believe that Hong Kong has room to improve when it
comes to the valuation of new economy companies, which is
damaging performance in the secondary market. Valuations have
been too high, according to some market participants.
While it's important for Hong Kong to remain an attractive
environment for companies to list in the jurisdiction, market
participants fear that comes at the price of waning regulatory
For instance, the jurisdiction has a high proportion of
retail investors – higher than that in the US
– yet no...