HKEX: Around 30 mainland-traded companies plan to list in HK

Around 30 mainland-traded companies are planning to list in Hong Kong, according to Hong Kong Exchanges and Clearing (HKEX).

HKEX’s head of global issue services Johnson Chui said on the stock exchange’s podcast “HKEXVoice” that the overseas listed companies it engages with primarily fall into two categories: Chinese American Depositary Receipts (ADRs) listed in US that are now returning to Hong Kong for listing, and overseas companies already listed on international exchanges. More than 30 such ADR companies have returned to list in Hong Kong.

Chui also revealed that three companies have been listed under Chapter 18C, a set of rules introduced in 2023 to speed up the initial public offerings of tech firms without profit track records. The Hong Kong market and HKEX provide an additional complementary listing platform beyond their local market, according to Chui. Hong Kong also provides a proper listing venue for companies in the new economy, artificial intelligence, new energy, and technology sectors.

“With many international investors in the Hong Kong market, along with the ability to connect with onshore Chinese investors through the mutual market access mechanism, companies that pursue dual listings in Hong Kong can tap into a larger potential investor base,” he added.  

In terms of HKEX’s recent efforts to optimise the listing environment in Hong Kong, Chui said it has recently completed a consultation on the pricing of initial public offerings (IPOs). This covers pricing procedures, offering structures, different allocation frameworks, and various categories of investors. With the consultation period now over, HKEX is expected to announce the results and implement optimisation measures soon.

Additionally, HKEX has been preparing the "Technology Enterprises Channel" (科企專線) as well as "REIT Connect”, said Chui.

The IPO market has been very active since last summer, with a significant increase in fundraising, according to Chui. In the first quarter of this year, 17 new companies went public, raising around HK$17.7 billion, more than doubling compared to the previous year. Many large, high-quality companies are applying for listings, and the follow-on issuance market has raised over US$18 billion, a 20-fold year-on-year increase.

Regarding collaboration with the Association of Southeast Asian Nations (ASEAN), Chui said HKEX has significantly increased its discussions with issuers in ASEAN, with many companies considering IPOs exploring the advantages of listing in Hong Kong. In recent months, several ASEAN companies have successfully listed in Hong Kong, and he believes this trend will continue.

“Apart from Asia, the Middle East is also a market we are committed to developing. We announced plans to open an office in Riyadh, Saudi Arabia, within this year and have signed a memorandum of cooperation with the Saudi Exchange Group, aiming to strengthen the partnership between Hong Kong and the broader Middle East region,” Chui added. 

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