HKEX Insight

Chapter 18C of the Main Board Listing Rules established a dedicated listing pathway for Specialist Technology Companies that are unable to meet the profit- and revenue-based financial eligibility tests under Chapter 8.

While the Listing Rules continue to apply in full, Chapter 18C introduces additional requirements, modifications and safeguards tailored to the characteristics and risks of specialist technology businesses, including their reliance on substantial capital and research and development to commercialise their products and scale up businesses, and longer commercialisation timelines despite high growth potential.

The chapter took effect on 31 March 2023, and as of end-March 2026, 14 companies have listed in Hong Kong under Chapter 18C.

Chapter 18C was introduced following a public consultation to address market demand for a listing pathway suitable for innovative technology companies at an earlier stage of development.

Such companies often face valuation uncertainty and may not yet generate sufficient revenue to sustain their operations, while still requiring access to public capital. Chapter 18C seeks to facilitate capital raising while maintaining market quality through enhanced admission criteria, disclosure requirements and investor protection measures.

As the need grows for innovative solutions to climate change, resource scarcity and other global challenges, funding pathways like 18C offer a way forward to ensure that promising technologies, such as electric and autonomous vehicles, robotics and energy storage, can be mobilised at scale – and in the process create more growth opportunities for investors and further strengthen Hong Kong’s position as a hub for innovative companies from around the world.

A Specialist Technology Company is a company primarily engaged in the research and development of, and the commercialisation and/or sales of, Specialist Technology Products within an acceptable sector of a Specialist Technology Industry.

These companies are categorised into Commercial Companies and Pre-Commercial Companies based on the amount of revenue they generate for the most recent audited financial year prior to listing.

Chapter 18C welcomes listing applications from companies operating in any of five Specialist Technology Industries: next‑generation information technology; advanced hardware and software; advanced materials; new energy and environmental protection; and new food and agriculture technologies.

HKEX publishes non‑exhaustive examples of acceptable sectors within each industry to provide guidance to applicants and their advisers.

Yes. Applicants outside the listed industries may be considered under 18C on a case‑by‑case basis if they can demonstrate high growth potential, that their success is attributable to the application of specialist technology, and that research and development (R&D) constitutes a major activity and expense. The Exchange retains discretion and assesses eligibility holistically.

Yes. Space-sector companies may be eligible for listing in Hong Kong under Chapter 18C where their core business is driven by research, development and commercialisation of specialist technologies. For instance, space-related activities involving satellite systems, payloads, space-enabled communications, spacecraft development and space exploration can fall within the scope of the Chapter 18C framework.

Chapter 18C categorises Specialist Technology Companies into Commercial and Pre-Commercial Companies because of their different risk profiles.

Commercial Companies are those that have met the prescribed commercialisation revenue threshold (i.e. at least HK$250 million for the most recent audited financial year) at the time of listing.

Pre‑Commercial Companies haven’t yet met this threshold and are therefore subject to additional eligibility, disclosure and continuing obligations reflecting their higher investment risks.

Chapter 18C prescribes minimum expected market capitalisation thresholds at the time of listing for both Commercial and Pre‑Commercial Companies.

At the time of listing, a Commercial Company must have an expected market capitalisation of at least HK$4 billion, while a Pre‑Commercial Company must have an expected market capitalisation of at least HK$8 billion, according to the temporary modifications announced by HKEX in August 2024.

These thresholds are intended to uphold market quality by ensuring sufficient scale and market interest that reflects the high growth potential of Specialist Technology Companies.

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Chapter 18C applicants must meet minimum R&D expenditure ratios over the relevant track record period, calculated as a percentage of total operating expenditure. Higher thresholds apply to Pre-Commercial Companies.

A Commercial Company must incur R&D expenditure amounting to at least 15% of its total operating expenditure both on a yearly basis for at least two of the three financial years prior to listing and on an aggregate basis over those three years.

A Pre‑Commercial Company must meet higher thresholds: at least 30% where revenue for the most recent financial year is HK$150 million or more, and at least 50% where revenue is below HK$150 million.

These requirements are intended to demonstrate that R&D is central to the applicant’s business strategy and value creation.

Chapter 18C generally requires applicants to have received meaningful investment from sophisticated independent investors prior to listing. This requirement helps ensure applicants have received investment from investors that have the experience and resources to conduct due diligence checks and have taken on sufficiently substantial investment risk, particularly those that invested at the early stage of its development at a time when the possibility of realising any gain from their investment via an IPO is uncertain. Such investment demonstrates that there is independent third-party support in the applicant’s prospects.

Yes. Eligible Chapter 18C companies may list with a WVR structure. Companies that fully meet the requirements of Chapter 18C are presumed to satisfy the Innovative Company Requirements for the purposes of the WVR listing regime, subject to compliance with applicable safeguards designed to protect minority shareholders.

Chapter 18C issuers are subject to bespoke IPO allocation requirements designed to support effective price discovery and orderly trading. These include minimum allocations to independent price‑setting investors and a tailored clawback mechanism at IPO.

The public float and free float requirements for Chapter 18C companies are the same as those applicable to companies listed under other listing regimes (including the conventional Chapter 8 route).

For more details, explore the Chapter 18C listing rules and guidance here.

Chapter 18A applies to Biotech Companies developing regulated products subject to approval by a Competent Authority. Chapter 18C applies to Specialist Technology Companies operating outside such regulatory approval frameworks, necessitating different eligibility, disclosure and risk‑mitigation approaches. This means that a Biotech Company that does not base its listing application on regulated products may apply for a listing under Chapter 18C.

The Technology Enterprises Channel (TECH) is a dedicated engagement channel to support prospective technology‑focused issuers that are considering a listing in Hong Kong. Its purpose is to facilitate early and more effective interaction between potential issuers and regulators.

Through TECH, prospective issuers under Chapters 18C and 18A can access a specialised review team that provides guidance on listing eligibility, regulatory requirements and application readiness at an earlier stage.

The channel also permits confidential filing, allowing eligible companies to submit listing applications without immediate public disclosure, helping them protect sensitive commercial, technological or clinical information while engaging with regulators.

You can learn more about TECH here.

Pre‑Commercial Companies are identified by a stock marker “P” appended to their stock names to enhance transparency and inform investors of the company’s pre‑commercial status and associated risks. The marker remains in place until the issuer satisfies the commercialisation revenue requirement and applies to have the designation removed.

As of end-March 2026, 14 companies have listed under Chapter 18C and raised a combined HK$28.4 billion, with additional applications in progress.

Chapter 18C has created a listing route for companies operating in a range of emerging and innovative sectors from AI and advanced materials to aerospace technology – and looking ahead, Chapter 18C is expected to play an increasingly important role in attracting high‑quality specialist technology issuers to Hong Kong while maintaining robust market standards.

HKEX will continue to refine and support Chapter 18C through facilitative measures such as the temporary modifications, the TECH channel and broader listing framework competitiveness reviews.