Hong Kong must ease listing rules to attract more angel funds and start-ups: HKEIA
Hong Kong would need to ease its listing rules and transaction requirements to attract more angel funds and become a hub for start-ups to go global, according to a leading industry body in the city. The city has only around 100 active angel funds – private investment vehicles targeting very early-stage innovative enterprises. This was far fewer than Shenzhen, which had about 400 such…
Hong Kong must simplify its listing rules to entice more angel funds and foster the growth of start-ups, according to Samson Tam Wai-ho, honorary chairman of the Hong Kong Electronic Industries Association (HKEIA). Currently, Hong Kong has only around 100 active angel funds, which are private investment vehicles that focus on early-stage innovative businesses, compared to Shenzhen's 400 such institutions.
Tam attributes the lack of angel funds and early-stage investors in Hong Kong as the weakest aspect of its capital market ecosystem for attracting start-up founders. To address this issue, Tam suggests easing the listing rules and transaction requirements for angel funds, allowing them to more easily cash in their investments through mergers and acquisitions or going public.
Hong Kong Exchanges and Clearing (HKEX) has already taken the lead in this matter by proposing to shorten the post-listing waiting period for spin-offs from three years to one year, and reduce the number of transactions requiring shareholder approval. Tam sees these proposals as a means to boost Hong Kong's appeal as a listing destination.
In addition to simplifying listing rules, HKEIA plans to organize more matchmaking activities to connect start-ups with investors, such as hosting a Future Industries Zone at the upcoming Electronic Fair.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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