Hong Kong to allow 5 types of Big Tech firms to list as HKEX pushes ahead with latest reform to become tech fundraising hub

Pre-revenue Big Tech companies that have a valuation of at least HK$15 billion (US$1.9 billion) can apply to list

Cloud, semiconductor, autonomous vehicles, new energy and new food technology firms qualify to raise funds

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An electronic board displays the latest stock transactions outside Exchange Square in Central, Hong Kong. Photo: May Tse

Published: 8:41pm, 19 Oct 2022Updated: 8:53pm, 19 Oct 2022

Hong Kong plans to allow five types of pre-revenue Big Tech companies to raise funds from next year, according to a proposal unveiled by the bourse operator on Wednesday.

Hong Kong Chief Executive John Lee Ka-chiu highlighted in his first policy address the biggest reform in four years to promote the city as a listing hub to fend off competition from Singapore.

Confirming a South China Morning Post report last week, Hong Kong Exchanges and Clearing (HKEX) will create new listing regulations for pre-revenue Big Tech companies that have a valuation of at least HK$15 billion (US$1.9 billion) to raise capital.

The valuation could be cut to HK$8 billion if the companies have earned at least HK$250 million in revenue in the last financial year leading to the listing, the HKEX said in a consultation paper that will collect views over the next two months before implementation next year.

Pedestrian walks under a huge screen showing Hong Kong Chief Executive John Lee delivering his first policy address on Wednesday. Photo: May Tse

The exchange will consider five types of Big Tech firms – specialist technology companies – that qualify under the new requirements. These include companies in hi-tech sectors such as cloud computing and artificial intelligence, as well as those in the advanced hardware sector covering electric and autonomous vehicles, semiconductors and metaverse.

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