HKEx announced the establishment of Biotechnology Advisory Group

Source: Yigu 2018-05-07 recently, the Hong Kong Stock Exchange announced that it has convened a number of senior people from the biotechnology industry to set up a biotechnology advisory group The current members include he Ruyi, Du Ying and elegant Victoria, he Meijian, Liang Zhuowei, Liang Ruian, Liang Heng, Lin Jiecheng, Shi Chenyang, suling, Wang Jian, Yang Chongguang, Yu Changhai and other 13 insiders, and the stock exchange will add new members as needed Li Xiaojia, President of the Hong Kong stock exchange, said that as the biotechnology industry is a professional sector, the stock exchange has set up an advisory group to assist in reviewing the application for listing of biotechnology companies submitted under the new rules According to Li Xiaojia, the work of the members of the Advisory Group is only advisory The stock exchange will only consult with individual members when "necessary" The stock exchange will first determine that the consultation does not involve actual or potential conflicts of interest The specific services provided by the biological Advisory Group include: Provide market expertise and suggestions on some aspects of the disclosure content of the prospectus, such as: whether the description of the biotechnology products, risks involved, approval and testing processes and schedules, competitive environment, business recognition, target market and potential demand is accurate and complete; provide advice on policy suggestions; Provide training / guidance in relevant professional fields It is noted that the initial term of office of the members of the Advisory Group is two years, which can be extended with the consent of both parties Each member of the advisory group can receive 80000 yuan as service fee every year Dai Linhan, director of regulatory affairs and head of listing of the Hong Kong stock exchange group, said: the members of the biotechnology advisory group are all experienced people in the industry, which helps the stock exchange to judge whether the biotechnology applicants are suitable for listing in our market, and whether they meet the relevant disclosure requirements, etc., hoping to help us continue to maintain a high level of respect for investors Guarantee On April 24, the Hong Kong Stock Exchange officially released the consultation document on the listing system of emerging and innovative industry companies One of the major changes was to allow unprofitable biotechnology companies to list in Hong Kong For such companies, the Hong Kong Stock Exchange suggests that the expected market value of biotechnology companies at the time of listing should not be less than HK $1.5 billion The applicant must show the progress of R & D of the core products obtained from outsourcing licensing technology or outsourcing, and the R & D of the core products should be at least 12 months, and at least one core product has passed the concept stage into the second or third phase of clinical trials If a company is engaged in the research and development of pharmaceutical or biological products, it must have multiple potential products, while medical machinery allows only one equipment product The Hong Kong Stock Exchange also suggested that a biotechnology company applying for listing should be provided with a considerable amount of third-party investment by a senior investor at least six months before listing, and should not be withdrawn before public offering; at the same time, the Hong Kong stock exchange is soliciting experts from the industry to form a biotechnology advisory group to provide opinions when necessary As for the public shareholding of biotechnology companies, the consultation document suggests that if the cornerstone investors and existing shareholders are not the core related persons of the company, their shareholding can be included in 25% of the public shareholding.