Chinese biotech firms Innovent Biologics and Ascentage Pharma, together seeking to raise $800 million from IPOs, have scrapped plans to list in New York in favour of Hong Kong, sources told Reuters.
One of the features attracting the firms to Hong Kong, the sources said, is new regulation to take effect at the end of this month allowing biotech and pharmaceutical companies to list without a history of profits or revenue generation.
Other factors include time zone and the familiarity of the HKSE with Chinese firms.
Ascentage Chairman Yang Dajun said: “We were already to file in the United States, but we have shifted to Hong Kong for listing as the HKEX opens its doors to us.”
There has been a rush of Chinese firms in the industry looking to benefit from the new, welcoming policies. Shanghai’s Henlius Biotech, Hua Medicine, and cancer-technology firm Grail have all listed in Hong Kong.