Capital Market Innovation Services Forum (hereinafter referred to as “Forum”) was successfully held on the 2021 China BioMed Innovation and Investment Conference (2021 CBIIC). The Forum was organized by China Pharmaceutical Innovation and Research Development Association (PhIRDA), Ernst & Young Hua Ming LLP, Frost & Sullivan, and Huatai United Securities. Although COVID-19 pandemic continues to affect all aspects of our lives, the popularity of many biotechnology and health enterprises in the capital market have not diminished. More and more biotechnology enterprises have realized their strategic goals, innovated and developed with the help of capital market, and further developed and expanded.

Experts with rich experience in capital market, such as securities firms, accounting firms, law firms and consulting firms from home and abroad, were gathered in the Forum, bringing wonderful speeches and panels to the participants. The Forum, which was scheduled to end at 11:30 am, continued until 12:30 pm. Hot topics such as the IPO accounting issues for biotech and pharmaceutical companies, prospect of capital operation trend of medical industry, and interpretation of IPO rules of Beijing Stock Exchange were discussed to provide services and support for relevant enterprises to expand financing channels with the help of the capital market, and help enterprises to avoid detours in the process of listing and move to the capital market faster and better.

The Forum was moderated by Grace Xiao, Assurance Partner of Ernst & Young Hua Ming LLP.

Moderator: Grace Xiao, Assurance Partner, Ernst & Young Hua Ming LLP

The keynote speech session began with “The Outlook of China’s Pharmaceutical Industry in the Post-Covid-19 Era” delivered by Fred Mao, Partner of Frost & Sullivan. He shared prospects of market and pharmaceutical industry in the post-COVID-19 era with the participants. The speech interpreted trends in the pharmaceutical industry from the perspectives of business models, target types, R&D strategies, and treatment categories. From the development and changes of the macro pharmaceutical market to the structural adjustment of the segment treatment field, Fred Mao gave the audience a clear understanding of the overall trend of the Chinese pharmaceutical market with detailed data and rigorous analysis.

Fred Mao, Partner, Frost& Sullivan

Then, Jane Yang, Beijing Chief Managing Partner and Government& Public Service Market Segment Leader of Greater China Assurance Partner of Ernst&Young Hua Ming LLC, gave a speech on the topic “Focus on Biotechnology Companies’ Public finance and Tax” and shared key issues concerning biotechnology companies’ public finance and tax, including global IPO market review, capital market comparison, listing requirements and procedures, listing financial preparation, listing financial concerns, common issues in listing audit, and “health check” of enterprises before listing.

Jane Yang, Beijing Chief Managing Partner and Government &Public Service Market Segment Leader of Greater China Assurance Partner, Ernst& Young Hua Ming LLC

Gao Yuan, Managing Director, Head of Healthcare Department of Huatai United Securities, delivered the last speech of the Forum: “The ‘Anchor’ of Value in Fluctuating market-- Prospect of Capital Operation Trend of Medical Industry”. His  speech included five parts: future valuation system foundation of China’s medical market, listing cycle arrangement and planning, pre-listing valuation and pricing of enterprises, IPO location and time selection, and audit policy interpretation. With his years of experience and industry data from Huatai United Securities, Mr.Gao gave the participants wonderful interpretation of each part.

Gao Yuan, Managing Director, Head of Healthcare Department, Huatai United Securities

Following the speech session was the first panel themed “HKEX is about to Introducing SPAC mechanism: Opportunities and Challenges”, moderated by Felix Fei, Health Science and Wellness Sector Co-leader, Greater China, Deputy Assurance Leader, China Central Partner, Assurance of Ernst & Young. Fred Mao, Partner of Frost&Sullivan, Jeff Lau, VP of Finance & Controller of Canbridge Pharmaceuticals Inc., Sarah Zhang, Vice president, Global Issuer Services of HKEX, Benjamin Qiu, Partner of Advantech Capital, and Su Hua, Life Science and Healthcare Practice Leader of EY Parthenon China had full communication and discussion on this topic. SPAC(Special Purpose Acquisition Company) is the hottest thing this year. It’s a relatively new phenomenon not just in Hong Kong, but even in the United States.

From left to right:

Moderator: Felix Fei, Ernst & Young, Health Science and Wellness Sector Co-leader, Greater China, Deputy Assurance Leader, China Central Partner, Assurance;

Panelists:

Sarah Zhang, Vice president, Global Issuer Services of HKEX;

Fred Mao, Partner, Frost &Sullivan;

Jeff Lau, VP of Finance & Controller, Canbridge Pharmaceuticals Inc.;

Benjamin Qiu, Partner of Advantech Capital;

Su Hua, Life Science and Healthcare Practice Leader, EY Parthenon China

The theme of the second panel was “Interpretation of IPO Rules of Beijing Stock Exchange (BSE)”, moderated by Gao Yuan, Managing Director, Head of Healthcare Department of Huatai United Securities. Raymond Zhu, Tax & Business Advisory Partner of EY, Fred Mao, Partner of Frost & Sullivan, Fu Yangyuan, Senior Partner of Jia Yuan Law Offices, participated in this panel and made thorough exchanges on the topic. According to the characteristics of BSE, system translation measure was adopted to translate the whole system of the selected layer. The 66 listed enterprises of the selected layer directly became the listed companies of BSE, which was the most important breakthrough. At the same time, BSE has provide a diversified de-listing mechanism for listed companies. The panelists believed that the characteristics of those stock exchanges, including their influence on the public’s choices, would become clearer in the future with the gradual implementation of policies, such as the gradual clarification of corporate audit standards.

From left to right:

Moderator: Gao Yuan, Managing Director, Head of Healthcare Department, Huatai United Securities;

Panelists: Li Qian, Senior Consulting Manager, Frost &Sullivan;

Raymond Zhu, Tax & Business Advisory Partner of EY;

Fu Yangyuan, Senior partner, Jia Yuan Law Offices;

Wood Zhang, Assurance Partner, Ernst &Young Hua Ming LLP

Capital Market Innovation Services Forum has attracted extensive attention from the biopharmaceutical industry. The experts have brought a series of excellent speeches, and the panels have also attracted the interest and continuous attention of the participants.

Capital Market Innovation Services Forum