New measures to bolster city’s global finance hub status, stimulate IPO sector
The China Securities Regulatory Commission launched a series of measures on Friday to further expand mutual access between the capital markets of the Chinese mainland and the Hong Kong Special Administrative Region.
In its official announcement, the central government reiterated its full support for Hong Kong’s effort to maintain its distinctive status and advantages. The new measures aim to consolidate the city’s position as an international finance center and facilitate the coordinated development of Hong Kong’s and the mainland’s capital markets.
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The measures include expanding the eligible product scope of equity exchange-traded funds under the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect; enlisting real estate investment trusts into the Stock Connects; supporting the inclusion of renminbi stock trading counters under the Southbound trading of the Stock Connects; enhancing the arrangements for mutual recognition of funds; and encouraging leading enterprises in the mainland to list in Hong Kong.
The measures are important initiatives to support the further development of Hong Kong’s financial markets ...
John Lee Ka-chiu, Hong Kong Chief Executive
The special administrative region government welcomed these measures on Friday.
Hong Kong Chief Executive John Lee Ka-chiu said: “The measures are important initiatives to support the further development of Hong Kong’s financial markets, increase the number of attractive investment products, provide more investment opportunities to local, mainland and overseas investors, and enhance Hong Kong’s status as an offshore RMB business center.”
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These initiatives are expected to stimulate Hong Kong’s sluggish initial public offering market. Financial Secretary Paul Chan Mo-po said that encouraging more leading mainland enterprises to list in Hong Kong will benefit Hong Kong’s IPO market. A higher number of listed companies capable of generating long-term growth and with good returns potential in Hong Kong will also drive the development of the secondary market, he said.
Since the commission published new regulations relating to overseas listings by Chinese companies in February 2023, 72 companies have completed their filings for IPOs in Hong Kong, according to the commission’s announcement on Friday.
Chan also said that more diversified financial products on offer will help attract international investors and capital and contribute to Hong Kong’s long-term market development.
