Starcoin Group Limited v The Stock Exchange of Hong Kong Limited

 (“Exchange”) [2026] HKCFI 3324, a company listed on the Main Board which engaged in the research and development (“R&D”) of a pharmaceutical product (but was not listed under Chapter 18A of the Listing Rules) sought leave to apply for judicial review against the Exchange’s decision to suspend trading in its shares on the ground of non-compliance with Rule 13.24 of the Listing Rules.

The main grounds of review alleged that (1) the Exchange failed to apply Rule 13.24 in a way which properly reflects the recognised characteristics of pre-revenue biotech R&D businesses, and (2) insofar as the Exchange applied a different standard to issuers listed under Chapter 18A, it failed to disclose the standard applicable to Chapter 18A issuers and failed to apply that standard to the Applicant.

In refusing to grant leave, Coleman J observed that although the Exchange has recognised that pre-revenue biotech companies exhibit distinctive characteristics that distinguish them from conventional revenue-generating businesses, that does not mean the Exchange applies a different standard to those companies. Instead compliance with Rule 13.24 is assessed with reference to the specific circumstances concerning the issuer’s business each case. On the facts, the LRC was entitled to conclude that the Applicant’s R&D business (which had remained effectively stagnant for more than 11 years) was not viable or sustainable.

, instructed by MinterEllison LLP, acted for the Putative Respondent.

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Application of Rule 13.24 of the listing rules to companies operating pre-revenue biotech R&D businesses

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