Financial Secretary Chan Mo-po (first row, 2nd from left); Laura Cha Shih May-lung (first row, 2nd from right), Chairman of Hong Kong Exchanges and Clearing Ltd; Li Chao (first row, first from right), Vice-Chairman of China Securities Regulatory Commission; and Nicolas Aguzin (first row, first from left), Chief Executive Officer of Hong Kong Exchanges and Clearing Ltd officiate at the gong striking ceremony marking the 30th anniversary of the first H-share listing in Hong Kong at the HKEX on Aug 22, 2023. (EDMOND TANG / CHINA DAILY)
The first listing of H-shares 30 years ago not only kick-started Hong Kong on its journey to becoming a leading international financial center but also paved the way for the nation’s financial opening-up, which continues to unfold, government officials and financial pundits said Tuesday.
In 1993, Tsingtao Brewery was the first mainland enterprise to go public in Hong Kong. Since then, more than 300 H-share listings have followed suit, with a total of HK$3 trillion ($383 billion) having been raised. Today, their market capitalization stands at around HK$28 trillion, accounting for a remarkable 77 percent.
Li Chao, vice-chairman of China Securities Regulatory Commission, pledged at a ceremony marking the 30th anniversary of the first H-share listing to continue to promote cooperation between the Hong Kong and Chinese mainland capital markets, maintaining the smooth flow of mainland enterprises' overseas listing channels
Li Chao, vice-chairman of China Securities Regulatory Commission, pledged at a ceremony marking the 30th anniversary of the first H-share listing to continue to promote cooperation between the Hong Kong and Chinese mainland capital markets, maintaining the smooth flow of mainland enterprises' overseas listing channels.
He added that the inclusion of more products such as bulk trading and real estate investment trusts (REITs) will be included in the Connect program, and the entry of medium- and long-term overseas funds into the market will be facilitated.
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“The first H-share listing was a foundational event in the history of Hong Kong’s markets. It marked the beginning of a journey that has redefined global capital markets and spawned three decades of Connect initiatives and market development that have connected China and the world,” Hong Kong Exchanges and Clearing’s (HKEX) Chairman Laura Cha Shih May-lung told the ceremony.
“I am extremely proud to have played a part in the design and launch of the H-share framework and to have had the privilege of witnessing the significant impact it has had on the region’s growth, facilitating vital capital raising, enhancing the international visibility of Chinese companies and supporting the continued evolution of good corporate governance in capital markets,” she told the ceremony.
Financial Secretary Paul Chan Mo-po said Hong Kong has given full play to its role as a testing ground and firewall in the process of the country's financial reform and opening up.
“Under the auspices of ‘one country, two systems’, Hong Kong has opened up broad financing channels for mainland enterprises to meet their capital needs at different stages of development by giving full play to its advantage of enjoying the strong support of the motherland and being closely connected to the world as well as bringing together top international financial professionals,” he told the forum.
Laura Cha Shih May-lung, Chairman of Hong Kong Exchanges and Clearing Ltd, delivers a speech during a ceremony marking the 30th anniversary of the first H-share listing in Hong Kong at the Hong Kong Exchanges and Clearing Ltd on Aug 22, 2023. (EDMOND TANG / CHINA DAILY)
Nevertheless, Hong Kong's securities market still has a very large space for development in the future, the finance chief said.
At present, the market capitalization of the Hong Kong stock market accounts for about 27 percent of the nation’s GDP, Chan said, adding that the total capitalization of Hong Kong, Shanghai and Shenzhen stock exchanges would represent around 90 percent of the economic output. That’s compared with the 1.7 times the US GDP that was accounted for by the capitalization of the New York and Nasdaq stock exchanges.
Echoing Chan’s remarks, HKEX CEO Nicolas Aguzin said Hong Kong’s strength in connecting the Chinese mainland and the world will meet bigger opportunities in emerging trends.
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“It is the most international city in China and the most Chinese city outside the mainland. This combination makes Hong Kong their ultimate East-West superconductor,” Aguzin said.
He said China's capital markets are expected to continue to rapidly evolve, potentially tripling in value over the next decade, creating “the big bang of finance” that will reshape global markets for decades to come.
“We also intersect with other significant changes that are shaping our world, changes such as innovation and the global sustainability agenda,” Aguzin said.
Against this background, Hong Kong has a key role to play in supporting growth in Asia, the flourishing of innovation and new technology, and the global sustainability agenda, he said.
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“As a bigger proportion of global economic activity moves to Asia, Hong Kong will have a key role to play. And HKEX is committed to ensuring that Hong Kong fully captures this opportunity,” Aguzin said.
