SSE STAR Market Forum--Helping Capital Market Reform, Promoting Pharmaceutical Industry Transformation and Upgrading
On the morning of September 26, 2021, the SSE SSE STAR Market Forum (herein after referred to as Forum) of 2021 China BioMed Innovation and Investment Conference (2021 CBIIC), hosted by China Pharmaceutical Innovation and Research Development Association (PhIRDA), was successfully held. As a pilot for China's capital market reform, the SSE STAR Market Forum focuses on supporting emerging industry of strategic importance and high-tech enterprises including biopharmaceutical. The Forum this year continued to invite participants in the primary and secondary markets to analyze and discuss the impacts and opportunities of the SSE STAR Market on the pharmaceutical innovation industry.
Moderator: Kevin Lin, Managing Partner, DNV Capital Limited
Firstly, Lu Xiongying, Deputy General Manager of Offering & Listing Center, Shanghai Stock Exchange, introduced the data map of the SSE STAR Market and the biopharmaceutical listed companies, the core principles of listing, and the certification specifications of registration-based IPO system. Lu Xiongying pointed out that since the announcement of the establishment of the SSE STAR Market, various systems have been implemented rapidly, attracting a large number of high-quality science and technology enterprises, and providing strong capital market support for China’s scientific and technological innovation. The annual IPO financing of the SSE STAR Market accounts for about 40% of the entire capital market. As of July 30, there were 7 companies listed on the SSE STAR Market with a market value of more than 100 billion RMB, 9 companies between 50 billion RMB and 100 billion RMB, 106 companies between 10 billion RMB and 50 billion RMB, and 191 companies below 10 billion RMB.
Lu Xiongying, Deputy General Manager, Offering & Listing Center, Shanghai Stock Exchange
Then, Inger Chen, Board Secretary of Shanghai Junshi Biosciences, gave a keynote speech on “Capital Market Enabled Junshi to Accelerate the Achievement of Its Unwavering Goal”. She first reviewed Junshi Biotech’s listing on HKEX and then on the SSE STAR Market, and expressed that the capital market reform has helped Junshi and other pharmaceutical companies to achieve advanced allocation of resources, funds, talents and external systems. Completing an IPO is not an end, it is actually the beginning of a company’s development. The SSE STAR Market has broadened its listing criteria for IPO, and the market tolerance has been greatly improved. A large number of innovative biopharmaceutical companies with international competitiveness have been bred, and the biopharmaceutical industry will continue to be cultivated in the future.
Inger Chen, Board Secretary, Shanghai Junshi Biosciences
Liu Dan, Partner of CDH Investments, pointed out on his speech “Embrace the Age of Biotech Innovation” that since 2020, the biopharmaceutical health sector has been the largest among all sectors in terms of financing, reaching 120 billion RMB last year. Despite the fluctuations because of the COVID-19 pandemic, the enthusiasm of investment and financing in the primary market of the pharmaceutical sector continued to surge in the first half of this year, reaching 95 billion RMB. CDH’s investment logic follows three evaluation dimensions: the scarcity of technology, the application ceiling, and whether the value can be proven and how great the value is. The organic combination of the molecular revolution brought about by the revolution of biotechnology and the new artificial intelligence productivity brought about by the intelligent revolution has promoted the birth of the current new technology innovation boom. In the future, the fields of medical and pharmaceutical health and TMT should work together to integrate biology and algorithms, and deploy them on more and newer tracks.
Liu Dan, Partner, CDH Investments
Liao Yixing, Co-head of Investment Banking Department Healthcare Division, Huatai United Securities, gave a keynote report on “Capital Operating of Biotech Company in SSE STAR Market”. He shared and discussed with the guests in five aspects, including the identification of science and technology innovation attributes, product originality, pioneering and patent issues, information disclosure, shareholder and financial verification, and issuance valuation.
Liao Yixing, Co-head of Investment Banking Department Healthcare Division, Huatai United Securitie
Tao Xudong, Partner of JunHe LLP, shared his view on “SSE STAR Market or 18A: Legal Perspective of Listing Venue Selection by Bio-tech Companies” from a legal perspective. He analyzed and compared Hong Kong stocks and SSE STAR Market from the aspects of science and technology innovation attributes, intellectual property and patent recognition, equity incentive, different rights of the same share, and compliance.
Tao Xudong, Partner, JunHe LLP
The following panel discussion was moderated by LiaoYixing. Li Ning, CEO of Shanghai Junshi Biosciences Co., Ltd., joined by Amy Tang, Venture Partner of Qiming Venture Partners, Jon Zhang, Executive Director of Investment Banking, Healthcare and Life Science Group, Citic Securities, Li Ying, Director of Life Sciences and Healthcare Department, Han Kun Law Offices, and Marietta Wu, Managing Director of Quan Capital launched a lively discussion on the innovation and development of biopharmaceutical industry on the SSE STAR Market. All panelists agreed that with the diversified reform and development of China’s capital market and the continuous improvement of related supporting systems, each sector will give full play to their own differentiated characteristics, and each innovation subject in the pharmaceutical field can make choices according to their own needs. All panelists expressed strong confidence in the SSE STAR Market. In the future, the SSE STAR Market will gradually develop into a market-oriented, legalized, and internationalized global capital market that focuses on the strength of hard technology.
Panel: SSE SSE STAR Market Supports the Innovation and Development of Biomedicine
From left to right:
Moderator: Liao Yixing, Co-head of Investment Banking Department Healthcare Division, Huatai United Securities;
Panelists: Li Ning, CEO of Shanghai Junshi Biosciences Co., Ltd.;
Amy TANG, Venture Partner, Qiming Venture Partners;
Jon Zhang, Executive Director, Investment Banking, Healthcare and Life Science Group, Citic Securities;
Li Ying, Director, Life Sciences and Healthcare Department, Han Kun Law Offices;
Marietta Wu, Managing Director, Quan Capital