Investor Presentaiton

• • • Hong Kong IPOs: 2021 outlook Market sentiment for 2021 will continue to be affected by global political, social and economic uncertainties, such as the development of the pandemic, Sino-US relations and the global monetary environment. Yet, we remain optimistic about the Hong Kong IPO market and the bourse will continue to be a top listing destination in 2021 due to the following reasons: There is growing interest from issuers and investors for homecoming listings as evidenced by nine US-listed Chinese companies that have completed its secondary listings in Hong Kong this year. Moreover, the bourse announced a plan to normalise the eligibility requirements for Greater China issuers without weighted voting rights (WVR) structures to secondary list in Hong Kong under Chapter 19C, proposing to revise the minimum market capitalisation requirement to USD400 million (~HKD 3 billion) and remove the "innovative company" requirement. The plan, if finalised and implemented, would allow more homecoming listings, with potentially 26 more Greater China Issuers eligible under the proposed new requirement. On enhancing Hong Kong's status as an international financial centre, the Central Government supports further deepening mutual access between the Mainland and Hong Kong markets. Pre-profit biotechnology companies listed in Hong Kong and stocks listed on the STAR Market that meet certain prescribed criteria will be included in the scope of eligible securities under the Stock Connect. The trend of homecoming and biotech listings further stimulates the change in the composition of Hong Kong's market, moving from the traditional base of real estate and financial services to a base of new economy listings, such as technology, biotech and e-commerce. The growing ecosystem for new economy companies would attract more companies of the same kind to follow suit and make Hong Kong an even more attractive international capital-raising venue in the new era. Benefitting from the new listing chapter launched in 2018, Hong Kong has been serving strong investor demand for high quality healthcare listings such as companies engaged in research and development of cancer treatments, autoimmune disease treatments, medical devices, etc. Following the strengthened ecosystem in Hong Kong with more biotech-experienced investors, investment bankers, lawyers, research analysts and financial advisers, we expect more companies to follow suit in the coming year. J Irene Chu Partner New Economy and Life Sciences KPMG China KPMG © 2020 KPMG, a Hong Kong partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved. 23

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