Biotech Startups To Be Allowed In Stock Connect

Biotechnology startups listed in Hong Kong that have yet to see a profit will be allowed to enter the cross-border stock trading programme, under a new initiative announced by the Chief Executive in her latest Policy Address.

The initiative will apply to most startups, listed in Hong Kong under the stock exchange’s new listing regime introduced in 2018.

Carrie Lam said Beijing has given the green light to the idea, which will open the tech firms up to a wider market of potential investors.

Stocks on the mainland's Sci-Tech Innovation Board in Shanghai will also be allowed into the pool.

Lam said the SAR government has been rolling out a series of policies in support of the mutual access financial markets in recent years.

She said while the companies have to meet some prescribed criteria, the initiative will "add a bright spot to the mutual access of the financial markets of the two places.”

Companies that are secondary listed in Hong Kong will not be included in the initiative however, despite earlier reports suggesting this would be the case.

Analysts said this was likely because of technical difficulties, as many of those companies are listed in the US. But they believe it is just a matter of time before they too are included in the stock connect programme.