Chief Executive John Lee Ka-chiu on Tuesday said the HKSAR government is wooing leading Chinese mainland ‘unicorns’ to launch IPOs in Hong Kong, in a bid to inject more vitality into the city’s capital markets.
The government will continue to organize promotions at home and aboard to promote Hong Kong’s advantages, especially the support measures recently issued by the China Securities Regulatory Commission, Lee said at a regular press conference held ahead of the weekly Executive Council meeting.
Lee revealed that Hong Kong Exchanges and Clearing is reviewing nearly 100 listing applications, some of which were submitted by mainland enterprises focusing on industries with highly-added-value, such as fintech and artificial intelligences
On Friday, the nation’s stock regulator announced five measures to further boost connectivity between the capital markets in Hong Kong and the mainland. The measures, encompassing expanding the eligible product scope of equity exchange-traded funds under the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect, incorporating real estate investment trusts to the two stock-connect programs and enhancing the arrangements for mutual recognition of funds, were welcomed by the city.
The commission also said it will encourage more leading enterprises in the mainland to list in Hong Kong.
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Thanking the central government for supporting Hong Kong’s financial markets, Lee said the city is discussing the measures’ implementation with relevant mainland authorities.
The measures will bring substantial help to the city by attracting more investment and capital from the mainland and overseas, Lee said.
Lee revealed that Hong Kong Exchanges and Clearing is reviewing nearly 100 listing applications, some of which were submitted by mainland enterprises focusing on industries with highly-added-value, such as fintech and artificial intelligences.
He said the government is reaching out to mainland companies which rank high among major “unicorn” enterprises, referring to high-valued technology startups, and inviting them to raise funds in the SAR.
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“These enterprises have high visibility and market valuation, and therefore their listing in Hong Kong will attract the attention and participation of investors around the world,” Lee said.
Starting in 2014, the mainland authorities have issued a series of initiatives to build the Hong Kong-mainland mutual market access program, allowing investors from Hong Kong and mainland to invest in each other’s markets. So far, the program covers the markets of stock, bond, interest rate swaps, wealth management products and block trading.
This year marks the 10th anniversary of the program. Lee said the government and Hong Kong Exchanges and Clearing is preparing a series of key promotional activities in the mainland, Hong Kong and overseas, highlighting the achievements, experiences and progress of the mutual market access program, as well as the financing and investment opportunities brought by the program.
Lee said the government will step up efforts to help mainland investors learn the program’s updates and enhance their interest in investing in Hong Kong’s stock market.
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The SAR government will continue to maintain close communication with the central authorities and strive for more national policies to benefit Hong Kong, Lee concluded.
