SSE STAR Market Forum | Helping Capital Market Reform, Promoting Pharmaceutical Industry Transformation and Upgrading
On the morning of September 29, 2020, the SSE STAR Market Forum (herein after referred to as Forum) of 2020 China BioMed Innovation and Investment Conference (2020 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. On 2020 CBIIC, SSE STAR Market Forum continues to invite participants from the primary and secondary markets to analyze the impact and opportunities of the launch of SSE STAR Market on the pharmaceutical innovation industry.
The Forum was moderated by Ms. Huang Qing, Chairman of GTJA HongRui Investment.
Moderator: Ms. Huang Qing, Chairman of GTJA HongRui Investment
The first keynote speech, “Introduction and Current Status of SSE STAR Market”, was presented by Mr. Peng Yigang, Associate Director of Offering & Listing Center of Shanghai Stock Exchange, focusing on the listed companies on SSE STAR Market. Mr. Peng pointed out that since the launch of SSE STAR Market, a series of initiatives and measures have been implemented rapidly, which attracted a large number of high-quality enterprises focusing on science and technology innovation, and supported domestic industry financially. SSE STAR Market meets the expectation towards its system design and implementation. The reform has fully realized its original idea and has yielded preliminary results. At present, there are 41 listed biopharmaceutical enterprises in SSE STAR Market, covering chemical drugs, biological products, CRO, medical devices, in vitro diagnosis, medical consumables etc. The total IPO amount reached 53.5 billion RMB, with a total market value of 715.8 billion RMB and a median increase or decrease of 138% from the IPO price. The market value of 12 enterprises has risen to over 20 billion RMB.
Mr. Peng Yigang, Associate Director of Offering & Listing Center, Shanghai Stock Exchange
The next keynote speech, “Trends and Opportunities of New Drug Research and Development under Reform of Capital Market in China”, was shared by Mr. Sheng Zelin, Chairman & CEO of Suzhou Zelgen Biopharmaceuticals. Mr. Sheng reviewed the history course of China's pharmaceutical industry and the listing story of Zelgen Biopharmaceuticals. He expressed that the capital market reform provided abundant funds for the development of innovative drugs. By providing a good environment of listing conditions, a number of innovative biopharmaceutical companies were fostered and will developed greatly.
Mr. Sheng Zelin, Chairman & CEO, Suzhou Zelgen Biopharmaceuticals
Then, Mr. Huang Fanzhi, Founding Partner of Share Capital, gave a keynote speech on "Investment Opportunity in the Era of Precision Medicine". Mr. Huang argued that the development of bio-related omics has facilitated precision medicine and reshaped the industrial chain in an all-round way, including equipment, biomaterials, detection reagents, targeted drugs, medical services, as well as key logic and strategies of healthcare investment. The capital market reform leads to a shorter period of listing/withdrawal cycle, uneven investment into the healthcare sector, long-term prevalence of biopharmaceutical, advance of PE/investment, vague difference between primary and secondary markets, increasing difficulty and risk of secondary market investment, and the more institutional investors and professional institutions.
Mr. Huang Fanzhi, Founding Partner of Share Capital
Mr. Zhao Ji, Executive Director of China International Capital, made a keynote speech on "Capital Operating of Biotech Company in STAR Market". Mr. Zhao introduced the following three aspects: I. Issue and listing of biopharmaceutical enterprises in SSE STAR Market under the acceleration of Review and Approval for New Drugs in China; II. Thoughts and suggestions caused by issue and listing of biopharmaceutical enterprises; III. Practicalities for biopharmaceutical enterprises’ IPO in SSE STAR Market.
Mr. Zhao Ji, Executive Director of Investment Banking of China International Capital
The last speech “Listing on STAR Market by Biotech Companies: Solutions and Tactics on Key Legal Issues” was presented by Mr. Tao Xudong, Senior Partner of JunHe LLP. Mr. Tao introduced the legal operation on SSE STAR Market for biopharmaceutical enterprises, and shared details on the listing conditions, regulatory requirements and operations from the aspects of nature of SSE STAR Market, R&D, verification of commercial listing, employee shareholding arrangement, peer competition dispute, reporting, etc.
Mr. Tao Xudong, Senior Partner of JunHe LLP.
The following panel discussion was moderated by Mr. Li Qiushi, Executive Partner of GTJA HongRui Investment, and participated by Mr. Peng Yigang, Associate Director of Offering & Listing Center of Shanghai Stock Exchange, Mr. Tao Xudong, Senior Partner of JunHe LLP, Mr. Zhu Pai, Partner of Efung Capital, Mr. Yu Wenbing, Assistant General Manager of Junshi Biosciences and Mr. Du Xiangyang, Chief Analyst of Southwest Securities. All panelists held a positive view on the SSE STAR Market, taking it as a market-oriented, legalized and internationalized world-famous capital market in the future.
From left to right:
Moderator: Mr. Li Qiushi, Executive Partner of GTJA HongRui Investment;
Panelists: Mr. Peng Yigang, Associate Director of Offering & Listing Center, Shanghai Stock Exchange;
Mr. Tao Xudong, Senior Partner of JunHe LLP;
Mr. Zhu Pai, Partner of Efung Capital;
Mr. Du Xiangyang, Chief Analyst of Southwest Securities;
Mr. Yu Wenbing, Assistant General Manager of Junshi Biosciences
Mr. Du Xiangyang, Chief Analyst of Southwest Securities
Plenary Meeting 1
Plenary Meeting 2