Hong Kong to surpass Nasdaq as king of biotech listings in five to 10 years as Chinese scientists dominate field, HKEX chief predicts

There is no question HKEX is one of the only two real global biotech equity fundraising centres, CEO Li says

Chinese scientists expected to dominate research as they are racing ahead in sector after sector in life sciences

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The HKEX has attracted a slew of Chinese-backed biotechnology listings this year. Photo: Reuters

Published: 6:38pm, 1 Sep 2020Updated: 12:56pm, 2 Sep 2020

Hong Kong will surpass the Nasdaq as the world’s largest biotechnology stock trading and fundraising centre within the next five to 10 years as Chinese scientists dominate research in the field, according to bourse operator Hong Kong Exchanges and Clearing (HKEX).

“There is no question we are one of the only two real global biotech [equity fundraising] centres,” chief executive Charles Li Xiaojia said at the HKEX Biotech Summit on Tuesday. “I’m sure, in the next five years, 10 years, or at some future time, we will be number one.”

Chinese scientists are massively racing ahead in sector after sector in life sciences, Li said. “They are standing among the best and brightest around the globe,” he added. “There is no reason why they will not bring us to the top of the world.”

The bold prediction follows a hectic year in which HKEX has attracted a slew of Chinese-backed biotechnology listings, helping to propel Asia’s third largest capital market to among the top venues for initial public offerings (IPOs). The quest builds on Li’s listing reforms in April 2018 that opened the door for such companies, including drugs developers to sell shares to the public without prior revenue or earnings track record.

Charles Li Xiaojia, chief executive of Hong Kong Exchanges and Clearing. Photo: Nora Tam

So far 20 stocks have gone public under the regime, while 12 more are in the IPO pipeline, said Christina Bao, HKEX’s head of global issuer services. Those that listed under the regime, including drugs and medical device developers, have performed well, she added.

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