Eight companies based in mainland China, including five biotech firms, recently received approval to move forward with their listings on the Hong Kong stock market. This significant development allows these companies to access Hong Kong’s substantial liquidity. The move comes as the China Securities Regulatory Commission (CSRC) encourages private firms to pursue listings in this financial hub.
Among the newly approved companies is Metis TechBio, a biotech firm that submitted its application under Chapter 18C— a listing framework designed for pre-profit technology companies. Founded in 2020 in Hangzhou, Zhejiang province, Metis operates in both China and the United States, leveraging three proprietary AI platforms to design and optimize drug delivery systems. These systems focus on how medications are packaged and processed within the body.
According to its recent filing with the Hong Kong exchange, Metis has shown impressive growth. Its revenue soared to 105 million yuan (approximately US$15.4 million) last year, a substantial increase from just 1.48 million yuan the year prior. Notably, the company has also managed to reduce its net loss to 391.8 million yuan from 499.2 million yuan. Metis’ leading drug candidate, MTS-004, an orally dissolving tablet aimed at treating pseudobulbar affect, has successfully completed phase three clinical trials. Additionally, the company has three other drug candidates currently in early-stage trials.
The influx of these companies aligns with the CSRC’s recent directives requiring businesses that established offshore holding structures—commonly termed “red-chip structures”—before 2023 to reincorporate on the mainland and seek Hong Kong listings. This regulatory shift aims to bring these companies back into the mainland while enhancing the vibrancy of Hong Kong’s stock market.
The Hong Kong stock exchange has demonstrated robust activity, with an average daily turnover of HK$276.7 billion (US$35.3 billion) during the first three months of 2026, reflecting a 14 percent increase from the same period last year. As the market continues to evolve, the successful listings of these companies may further solidify Hong Kong’s position as a leading platform for global investment.
