Shanghai Henlius Biotech Inc is reportedly planning its IPO offering

As Hong Kong is looking to overhaul its traditional IPO rulings in order to create further competition with New York, Shanghai Henlius Biotech is set to benefit from these changes.

Bloomberg has reported that the company is looking to go public under the change in rulings, and could be the first biotech company in the country to do this, attracting further investment. The country is one of largest pharmaceutical players in the world.

By selling a large number of shares, the subsidiary of Shanghai Pharmaceutical Group could gain up to $500 million, which will enable the business to further its research and development in oncology and autoimmune diseases.

Chinese based biotech companies have previously only been able to list on the US, limiting the growth of drug production and research.

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Enabling companies which have previously earned limited revenue to list will also lead to increased engagement from national and international investors who understand the complexities surrounding business in Hong Kong and its local audience, as well as provide an overall boost to the city’s economy.

“The rule changes to allow dual-class shares will enhance Hong Kong’s competitiveness vis-a- vis the US, especially for Chinese technology IPOs. It is the right timing for Hong Kong to make these changes. It will be a game changer,” commented Mervyn Chow, Chief Executive at Credit Suisse.

Additionally, Chinese biotech Hua Medicine is also looking at the advantages of an IPO in Hong Kong as it is in the final stages of developing a diabetes drug, as well as invest significantly in its research and development, according to the South China Morning Post.