12month11Today, the Hong Kong Exchanges & Clearing Limited (hereinafter referred to as 'HKEX') and the Qingdao Municipal Government signed a Memorandum of Understanding in Hong Kong, aiming to strengthen communication and cooperation to jointly support Qingdao enterprises in listing on the Hong Kong stock market. While the Hong Kong Stock Exchange is deepening its ties with the mainland, mainland enterprises have gradually become the main force in the Hong Kong stock market. According to data from the official website of the Hong Kong Stock Exchange, as of this year11At the end of the month, the cumulative number of Mainland Chinese companies listed on the Hong Kong stock market reached1439Home, accounting for approximately55.28%The market value of mainland enterprises accounted for77.8%.
How should we view the Hong Kong Stock Exchange's successive signing of cooperation memorandums with local governments in the mainland? What practical significance will this have for supporting mainland enterprises to go public in Hong Kong? How should we view the trend of characteristic enterprises from various regions flocking to the Hong Kong Stock Exchange? Mainland enterprises on the Hong Kong stock marketIPO listingThe market plays an important role. Which industries or companies have performed outstandingly this year? Frost & SullivanFrost & SullivanLu Jing, Partner and Managing Director of Frost & Sullivan's Greater China Region, was interviewed by Securities Daily to discuss the above topics.
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Securities Daily
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Securities Daily Reporter: How do you view the Hong Kong Stock Exchange's successive signing of cooperation memorandums with local governments in the mainland, and what practical significance will it have for supporting mainland enterprises to go public in Hong Kong? How do you view the trend of characteristic enterprises from various regions flocking to the Hong Kong Stock Exchange, such as cross-border e-commerce enterprises from Guangxi?
The Hong Kong Exchange has successively signed cooperation memorandums with multiple local governments in the Chinese mainland. This is an important measure to promote mainland enterprises to go public in Hong Kong and aligns with the vision of the China Securities Regulatory Commission to make it more convenient and efficient for mainland enterprises to go public in Hong Kong and further deepen interconnectivity. It sends a positive signal for the further development of China's capital market.
Firstly, this marks a further strengthening of cooperation between Hong Kong and the mainland in the financial field, providing mainland enterprises with a more open and international capital market platform. As an international financial center, Hong Kong has a mature capital market, a sound legal system, and a wide range of international investors. Through this cooperation, mainland enterprises can more conveniently access international investors, enhance their global visibility and brand influence, and also obtain more diversified financing channels. This integration also includes aspects such as corporate governance, market regulation, and information disclosure, which helps mainland enterprises improve their management level and transparency, thereby enhancing their competitiveness in the international market.
The cooperation between the Hong Kong Stock Exchange and local governments on the mainland also means that mainland enterprises will receive more support and convenience from local governments during the process of listing in Hong Kong. From policy guidance, market access, information exchange to regulatory cooperation, these measures will greatly reduce the threshold and cost of enterprise listing, accelerate the listing process, and thereby promote the development of the entire regional economy. The China Securities Regulatory Commission has also stated that it will play the role of an international platform supporting mainland enterprises' financing in Hong Kong, promote the formation of a more transparent, efficient, and smooth overseas listing regulatory coordination mechanism, continuously smooth the overseas listing channels for mainland enterprises, and introduce more representative 'green light' cases.
Furthermore, these cooperation memorandums contribute to promoting economic integration between the mainland and Hong Kong. As more mainland enterprises choose to list on the Hong Kong stock market, the economic ties between the two places will become closer. This not only helps to develop the economy of Hong Kong but also promotes the opening up and internationalization of the mainland economy. By listing on the Hong Kong stock market, mainland enterprises can better utilize Hong Kong's international resources and market advantages to facilitate the implementation of their globalization strategies.
In recent years, the Chinese mainland has focused on innovative industries such as artificial intelligence, new energy, and healthcare. Additionally, characteristic enterprises from various regions have gone public in Hong Kong, reflecting new trends in the diversified development of the Chinese economy. The Hong Kong Stock Exchange provides an international-standard capital market environment for innovative industries and characteristic enterprises. These enterprises typically possess innovative business models, flexible market strategies, and strong technical capabilities. Listing on an international financial platform like Hong Kong can not only help these enterprises obtain broader international capital support but also enhance their brand's international influence. Moreover, enterprises in characteristic industries and emerging market sectors often represent the development direction of regional economies and trends in emerging industries. Listing in Hong Kong not only helps with the development of these enterprises themselves but also promotes the upgrading and transformation of the entire industry.
Overall, a series of close collaborations between the Hong Kong Stock Exchange and the mainland government have had a profound impact on supporting mainland enterprises to go public in Hong Kong. This not only benefits the development of the enterprises themselves but also helps to strengthen Hong Kong's status as an international financial center, while promoting in-depth cooperation and exchanges between the mainland and Hong Kong in the financial field.
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Securities Daily Reporter: Mainland enterprises trading on the Hong Kong stock marketIPO listingThe market plays an important role. In your opinion, which industries or companies have performed outstandingly this year?
projected2023In 2019, the Hong Kong market will exceed61Enterprises are going public for the first time, while mainland enterprises will continue to dominate the Hong Kong market. The number of mainland companies listing in Hong Kong is expected to exceed90%The amount raised exceeded95%In terms of industries, technology, media, and communicationsIPO listingThe number column ranks first in the Hong Kong market, and the biotechnology and healthcare industry tops the fundraising charts in the market. As of2023year12month12On the same day, the new share that raised the most funds was Zhenjiao Lidu, raising53HK$10 billion. Ranked after them are WuXi AppTec, Jutu Express, Hongxin Construction Materials, Corning Biotech, Guohong Hydrogen Energy, and Tuhu.
The continuous interest rate hikes by the Federal Reserve, the global banking crisis, and the slower-than-expected recovery of the Chinese economy have slowed down trading in the Hong Kong market and kept valuations low. Over the past two years, Hong Kong has continuously improved its listed infrastructure and ecosystem, including the introduction of special purpose acquisition companies (SPACThe listing system, implementation of dual-counter trading, optimization of the stock interconnect mechanism, and the recent official launchFINIThe platform, etc. To further reform the Hong Kong stock market, a series of measures have been introduced this year to enhance its attractiveness.3The Hong Kong Stock Exchange has added18CZhang: Positive for technology industries such as artificial intelligence;9The Hong Kong Stock ExchangeGEM indexThe consultation on the reform of the Hong Kong Growth Enterprise Market (GEM) has been launched with the aim of enhancing market liquidity, strengthening the survival-of-the-fittest mechanism, and improving the overall quality of the market.
With the gradual recovery of the global economy and the continuous development of technological innovation, fields such as technology and the internet, biotechnology and healthcare, green energy and environmental protection, as well as fintech, are expected to continue to be growth engines for the Hong Kong stock market.
* This interview was published in Securities Daily Reporters: Xie Ruolin and Mao Yirong. Original title: within the year56Mainland enterprises going public in Hong Kong The proportion of new economy enterprises has increased. ">
