Hong Kong: A Hotspot for Biotech IPOs

In recent years, Hong Kong has emerged as a prime destination for biotech initial public offerings (IPOs), drawing interest from both mainland Chinese and global firms. The game-changer was the introduction of Chapter 18A in 2018, allowing pre-revenue biotech companies access to public capital markets, thus invigorating the local capital landscape and fostering innovation within the sector.

Fast forward to May 2025, regulators took another major step by launching the Technology Enterprises Channel (TECH), a ground-breaking platform dedicated to biotech listings, offering even greater flexibility for emerging companies. In this evolving scene, we delve into the current state of biotech IPOs and assess how Hong Kong can secure its future as a global innovation and capital hub.

From Regulations to Results: A Transformational Shift

Since Chapter 18A came into effect, Hong Kong has become an essential fundraising hub for biotech startups, allowing them to tap into public markets for the first time. This reform has helped the Hong Kong Stock Exchange (HKEX) position itself as a competitor against Nasdaq and Shanghai, by welcoming high-growth biopharma companies that would typically struggle to meet traditional profitability criteria. Today, Hong Kong ranks as the second-largest market for biotech IPOs worldwide, trailing only the United States.

According to Kimberly Ha, CEO of KKH Advisors, 'Chapter 18A has firmly established Hong Kong as Asia’s premier venue for pre-revenue biotech listings, previously dominated by U.S. exchanges. This has created a steady influx of Chinese biotechs and positioned the city as a capital-raising alternative for global investors.'