HKEX 'to keep refining IPO system for mainland firms'

Hong Kong Exchanges and Clearing (HKEX) chief executive Bonnie Chan revealed that the stock exchange is continuously refining its listing framework to facilitate mainland enterprises in listing their shares in Hong Kong. Speaking on RTHK's On Broadcast Drive, Chan emphasized the stock exchange's pivotal role in bolstering Hong Kong's international financial standing, especially in the context of the country's 15th Five-Year Plan.

Chan pointed out that the HKEX has tailored its rules to simplify the initial public offering (IPO) application process for mainland companies. "For instance, with the newest round of firms we've encountered – be it in AI, biotech, or new energy – they frequently need to allocate significant resources to research and development," Chan stated.

"So, when we aid their growth, it's crucial that our listing rules align with their requirements." Previously, companies were often required to demonstrate profitability for three consecutive years before being permitted to list. However, in recent years, HKEX has been dedicated to devising more customized listing channels. Chan further highlighted the exchange's efforts to strengthen market liquidity, which has led to a greater investment in constructing a multi-asset ecosystem.

She noted that overseas investors are showing growing interest in diversifying their portfolios beyond conventional stocks and bonds. To cater to this demand, Chan asserted that HKEX is creating alternative investment vehicles in sectors like fixed income, currencies, and commodities. Emphasizing the exchange's commitment to supporting investors, Chan stressed the HKEX's intention to introduce more yuan-denominated investment products to help mitigate exchange-rate risks.