How do you approach managing legal aspects during periods of instability or crises, and how does your legal strategy align with the broader business strategy to ensure the organisation’s resilience? 

Instability or crises, whether they stem from climatic, political, health or social factors, have become increasingly normal in today’s world. As a competent in-house counsel, it is essential to anticipate the unexpected and be prepared for constant changes. It is also important to navigate work effectively under such dynamic environments and prepare the legal team to react and provide sound advice to the business.  

Understanding the scope and essence of these changes is vital in assessing their impact on the business. By doing so, in-house counsel can develop pragmatic alternative directions for the business to consider. It is not enough to be dynamic and innovative; it is equally important to actively listen to feedback and understand the challenges faced by the business during periods of change. Maintaining fluid communication with stakeholders is key to aligning commercial and legal/compliance strategies. As in-house counsels possess a deep understanding of the business’s operations, we should propose practical yet flexible solutions that help fulfill the business strategies and hence ensure the organisation’s resilience.  

What are the most significant cases or transactions that your legal team has recently been involved in?  

My team recently played a significant role in the successful Chapter 18C listing of QuantumPharm Inc. in Hong Kong, advising our financial institution, CITIC Securities (Hong Kong) Limited, and CLSA Limited who participated in the transaction as the sole sponsor and one of the overall coordinators, respectively. Introduced by the Stock Exchange of Hong Kong Limited (Hong Kong Stock Exchange) in March 2023, the Chapter 18C regime specifically caters to specialist technology companies. The initial public offering and listing of QuantumPharm on the Main Board of the Hong Kong Stock Exchange were highly successful, with QuantumPharm raising gross proceeds of HK$989.3 million before the greenshoe option, and achieving a market capitalisation which exceeds HK$20 billion. The public tranche of the offering was oversubscribed by an impressive 102 times. Notably, QuantumPharm is the first AI-powered drug and new material discovery company to be listed in Hong Kong, making this transaction a landmark event.  

This milestone achieved is expected to attract top global technology companies to consider listing in Hong Kong, especially those in the pre-commercial or commercial tech sectors, which constitute the majority of Chapter 18C specialist technology companies. Given the innovative requirements outlined in Chapter 18C and the diverse investor structure, my team successfully collaborated with various professional parties to navigate multiple rounds of inquiries from regulators, including the CSRC, within a tight timeframe of just five months. Our ability to partner effectively with internal and external stakeholders was particularly evident in resolving complex issues, such as obtaining SFC waivers for the cornerstone investors’ double-dipping arrangement. This showcases our team’s expertise in handling intricate matters and demonstrates our commitment to delivering successful outcomes.   

Overall, our involvement in this groundbreaking transaction underscores our team’s proficiency in the field and positions our financial institution as a trusted partner for companies seeking to navigate the complexities of the Hong Kong Stock Exchange and Chapter 18C listing requirements.