CHFT Valuation Sharing Seminar -
Chapter 18A Listing Rules and Valuation for Biotech Companies

Sharing often bring new insights and inspirations. With the success of CHFT Valuation Sharing Seminar on 10 June 2019, professionals gather to learn and know more on the latest listing rules and valuation for Biotech companies. 

Recently, the Hong Kong Stock Exchange(“HKEX”) published the consultation conclusions on its proposals to expand the listing regime to enable the listing of companies from emerging and innovative sectors. The objective is to facilitate the listing of companies from innovative and emerging sectors. As there is no local medical regulatory body in Hong Kong, HKEX would be more conservative during the approval process of the listing of Biotech companies. Investors and valuers may refer to the U.S. Food and Drug Administration or State Food and Drug Administration for more reliable and diverse data.

In the seminar, our executive director Ms. Stella LAW and our director Mr. Ross WANG, had shared our overview of requirements under Chapter 18A, recent market trends and valuation methods for Biotech companies and more importantly, their professional insight on the topic. In the Q&A session, the audience raised some interesting questions, such as how to substantiate a discount rate and how to differentiate a good medical product from poor one, and our speakers addressed all the questions with their experiences - clearing the frogs on the topic. 

The seminar also drew attention from a couple of reporters from various local press, please kindly refer to the report of SingTao and Oriental Daily.

“Ms Stella LAW (CHFT) said that this kind of stocks has a higher risk, HKEx should put more emphasis in educating investors and helping individual investors to know about the potential return and risk of each development phase of a Biotech company stock.”
Finance Section, Sing Tao Daily
(11 June 2019)