Hong Kong gaining lustre as bridge to China’s tech sector: HKEX CEO
The Hong Kong stock exchange’s initial public offering (IPO) pipeline remains strong, as the city benefits from its unique role as a connector between mainland Chinese tech start-ups and global investors, according to the bourse operator’s CEO. Bonnie Chan Yiting, CEO of Hong Kong Exchanges and Clearing (HKEX), said mainland Chinese companies’ interest in listing shares on the bourse was growing…
The Hong Kong stock exchange, HKEX, is gaining prominence as a gateway to China's burgeoning tech sector, according to the exchange's CEO, Bonnie Chan Yiting. Chan highlighted that mainland Chinese companies are increasingly choosing Hong Kong as a platform for international expansion, seeking both financing support and connections with global investors, customers, and partners.
This shift in preference comes as mainland Chinese firms look to capitalize on Hong Kong's advantageous position, which remains accessible to foreign investors through the Stock Connect program, unlike mainland exchanges, which are largely inaccessible due to capital controls. Chan's comments followed a series of high-profile IPOs on China's A-share market, driven by investor interest in Chinese tech giants such as ChangXin Memory Technologies.
The data suggests that Hong Kong's allure as a fundraising destination is growing, with international institutional investors increasingly participating in Hong Kong IPOs to tap into the potential of innovative Chinese tech firms. Analysts point to the strong R&D capabilities and cost advantages of Chinese tech firms in various sectors, including artificial intelligence, robotics, and biotechnology, as key factors attracting global investment.
Notable recent listings on Shanghai's Star Market include firms like CXMT and Unitree Robotics, while another chipmaker, Yangtze Memory Technologies Corporation, is set to go public in Hong Kong. Despite Hong Kong reclaiming the top spot for IPO fundraising last year, the Nasdaq remains the leading destination for such transactions.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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