On the morning of September 28, 2020, the ChiNext Forum of 2020 China BioMed Innovation and Investment Conference (2020 CBIIC), hosted by China Pharmaceutical Innovation and Research Development Association (PhIRDA), was successfully held in Suzhou Jinji Lake International Conference Center. ChiNext Forum aims to provide better understanding of latest policy for ChiNext, further endow all parties in pharmaceutical innovation and capital market with fulfillment. The ChiNext Forum connects all links for biopharmaceutical companies’ listing process, making financial capital truly serve for science and technology innovation as well as substantial economy.

The ChiNext Forum was moderated by Mr. Huang Jiyan, Head of Jiangsu Province, Shanghai Center, Shenzhen Stock Exchange.

Moderator: Mr. Huang Jiyan, Head of Jiangsu Province, Shanghai Center, Shenzhen Stock Exchange

The first speech “Registration Reform Policy of ChiNext” was delivered by Mr. Qiu Linglong, Director of Shanghai Center, Shenzhen Stock Exchange. Mr. Qiu introduced the development of ChiNext over the past ten years, during which ChiNext not only have supported start-up businesses and new-model enterprises, but also pay attention to biomedical sector. In this registration-based reform, the ChiNext loosened the limitation on financial indicators, allowing red chip enterprises, enterprise with special equity structure, and loss-generating enterprises to list (loss-generating health-care enterprises will be allowed to list on year later). The reform enacts a verification system with information disclosure as the core in securities offering, with more open and transparent audit process, which places a stricter requirement on enterprises and securities companies. The reform also frees the enterprises from the IPO p/E ratio. The follow investment is no longer mandatory for securities companies, and equity-based incentives is introduced to support the development of healthcare industry.

Keynote Speaker: Mr. Qiu Linglong, Director of Shanghai Center, Shenzhen Stock Exchange

The second speech, “Seize the Opportunity-Registration-based IPO System Supports the Development of Pharmaceutical Companies”, was shared by Mr. Xie Liheng, Director & Board Secretary of Zhejiang Weicome Pharmaceutical. Mr. Xie stated that, China's capital market was embracing historical opportunity in this reform deepening period, bringing a registration-based system for Chinese market, and the future China’s capital market would be long-term value-oriented with multiple levels. Pharmaceutical enterprises should firmly grasp this significant historical opportunity to enter the capital market, and took the advantages of direct financing for better brand effect, more talents, standardized operation and higher asset value. It is also vital to utilize finance in the market to develop the industry, to integrate it as a main driver, and further to achieve sustainable development.

Keynote Speaker: Mr. Xie Liheng, Director & Board Secretary of Zhejiang Weicome Pharmaceutical

The following keynote speech was presented by Mr. Wang Jun, Partner of Puhua Capital, on the theme of “Social Capital Empowers Pharmaceutical Innovation Companies”. Mr. Wang Jun believed that the pandemic had spurred an era where social capital embraces the medical industry and the financing in all sub-sectors showed an active performance. The Hong Kong stocks has brought a number of pharmaceutical IPOs with high share prices and active trading. ChiNext has obvious advantage for its high liquidity, making itself as IPO destination for all companies in the medical ecology.

Keynote Speaker: Mr. Wang Jun, Partner of Puhua Capital

The last speech “Serve the Real Economy with Professional Advantage” was given by Mr. Zeng Xin, CRO of Gusen Securities, who put forward that: under a favorable policy, the medical and healthcare industry had successfully caught the eye of capital market. The main focus of listing for innovative pharmaceutical enterprises includes: industry policy, R&D pipeline, competitive products, market space, R&D mode, source of core technology, sales system, R&D expenditure and sales expense.

Mr. Zeng Xin, CRO of Guosen Securities

The Panel “ChiNext Supports the Innovation and Development of Biomedicine” was moderated by Mr. Zhang Ling, Managing Director and Head of China Healthcare Investment Banking, J.P. Morgan. The panelists jointly agreed that listing on stock was a very important step in the process of a company's development, which should be differentiated by its own actual needs. Due to the high professional and high-tech character of healthcare industry, its price needs to be set by professional investment institutions and secondary market securities. The opening-up policy of ChiNext brings great benefits to fund investors. The reform will not be accomplished in a short period, but will gradually form a long-term, stable, open and inclusive capital market, contributing to the innovative development of the biomedical industry.

From left to right:

Moderator: Mr. Zhang Ling, Managing Director and Head of China Healthcare Investment Banking, J.P. Morgan;

Panelists: Mr. Qiu Linglong, Director of Shanghai Center, Shenzhen Stock Exchange;

Mr. Darren Cai, Founder & Managing Partner of Sherpa Venture Capital;

 Mr. Stephen Lin, Partner of Lilly Asia Ventures;

Ms. Xuan Wenxin, Parter of Pan-China Certified Public Accountants;

Ms. Joanne Wang, Partner of King & Wood Mallesons

ChiNext Forum

CBIIC Participants Exchanging Business Cards with Roadshow Speakers