HK To Allow Pre-profit Tech Firms To List: Minister

Financial services minister Christopher Hui said on Sunday that high-tech firms would soon be allowed to list in Hong Kong before they generate revenue or reach profitability.

The official told a Commercial Radio programme that the stock exchange is rolling out a new arrangement next month to make that happen, easing profitability requirements. He said authorities hoped the change would attract firms in industries such as new energy.

Companies listing in Hong Kong usually have to report a profit of HK$35 million for the previous year and HK$45 million in aggregate for the preceeding two years, or meet requirements on market capitalisation and revenue.

Hong Kong Exchanges and Clearing launched a consultation last year on easing most of those requirements to attract specialist technology companies in certain sectors.

Meanwhile, Hui said the government was helping international private equity funds enter the mainland market, by negotiating with authorities in Shenzhen's Qianhai economic zone.

The minister said 600 such funds have been registered in the SAR in the past couple years, and those organisations would bolster demand for professional services here.

"A lot of legal support and accounting support is needed in the process. So when they set up such entities in Hong Kong, they use a range of our financial and professional services," he said.

"And secondly, they can invest in the tech firms on the mainland... Those enterprises may be listed in future."

Meanwhile, Financial Secretary Paul Chan says Hong Kong has a unique edge in developing into a leading green technology and finance hub, noting an abundance of green tech start ups in the SAR.

The finance chief unveiled a raft of measures in his budget to promote a green economy, including expanding a green bond scheme to cover sustainable finance projects.

Writing on his official blog on Sunday, Chan pledged more support for green tech companies when it comes to financing and business management, to lure talented people and investors here.

In his budget speech, the finance minister also imposed a HK$12 billion levy on the Hong Kong Jockey Club's football gambling earnings over the next five years, despite reservations from the club.

Chan told a television programme that he believes the impact would be minimal, and that the club had enough reserves to cope with the levy.

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