Deals
Hong Kong Seeks to Cash In on Frenzy for Chinese Drug Stocks
- Exchange considers letting unprofitable biotech firms list
- Stocks of Chinese drug developers have boomed overseas
This article is for subscribers only.
Chinese drug companies have been on a tear in the U.S. stock market. Now, entrepreneurs and investors betting on the Asian country’s fledgling biotechnology industry see another reason for optimism.
The stock exchange in Hong Kong -- home to the world’s fourth-largest equity market -- is in the midst of weighing a proposal that would allow biotech companies to list even before they turn a profit. If those plans go through, it would pave the way for more Chinese health-care firms to raise money via initial public offerings, giving them easier access to funds for research.